Why Choose a Hosted (ASP) Solution?

Why Go With a Hosted or "ASP" Solution?  Read this article below... 

WEST DES MOINES, IA, October 11, 2004 -- "Choosing an ASP for Your LMS," the latest industry study from e-learning research firm Bersin & Associates. Researched and written by principal analyst Chris Howard, the paper explores the many business reasons an organization might consider an ASP (application service provider) instead of the traditional software model for their LMS deployment.

In researching the advantages of the hosted-ASP model, the Bersin paper cites shorter deployment times, improved execution and focus, reduced project risk, easier access to new technology, and lower costs. “Enterprise-wide applications such as LMSs can be deployed without installing any new technology,” says Howard. “This makes LMSs viable in cases where they may have been cost prohibitive.”

The report outlines the pros and cons of the hosted model to help buyers decide which option will best suite their needs, and also provides a series of questions to help buyers distinguish between LMS vendors that are true ASPs and vendors who only offer ASP as a side-business. “These companies [true ASPs] are differentiated from other LMS providers in that their only offering is as an ASP,” writes Howard. “So their business, technology, and operational structure is optimized for delivering learning management as a service—not a product."

The Bersin research also dispels the myth that ASPs are primarily used by small and medium-sized organizations. “Our research indicates that this is not necessarily the case with LMSs,” says Howard. “Organizations of all sizes use an externally hosted option for their LMS and deployment choice has little correlation with organization size.”

The paper finds that even large organizations can and do benefit from outsourcing the business applications required to deploy, run and maintain a learning management system, including hardware, software, content integration and help desk support.

“In recent years, as companies have scaled back their fixed costs, many buyers choose to employ an ASP because they have limited resources. Training managers may not have access to the ongoing resources (e.g. IT, administrative, help desk staff) that are required to keep an LMS up and running. These organizations are in the best position to leverage an ASP.”

The ASP LMS study is part of Bersin & Associates’ What Works™ series, primary research that offers learning practitioners factual and practical insights that improve program effectiveness and results, reduce costs, and avoid time-consuming and costly mistakes.