The dot-com age of the mid-nineties introduced the application hosting model to the business world. Thus, a plethora of companies offering a wide range of software as a service (SaaS) typically offered hosted legacy customer relationship management (CRM) and enterprise resource planning (ERP) systems, allowing many to join the Internet revolution. Unfortunately with the sudden burst of the dot-com bubble in 2001, the application services provider (ASP) business model never really had a chance to prove its worth to the business world. Only in the last couple of years have we seen software giants like Salesforce.com prove that the ASP model can work. Banking on the recent momentum of this model, a number of professional services automation (PSA) solutions have built business models on ASP technology.
For professional services organizations (PSOs) that have limited resources and limited information technology (IT) infrastructures, the ASP model represents an attractive offering. Smaller PSOs may benefit from the quick deployment and affordable initial price point provided by hosted PSA solutions. In addition, increased security measures have ensured the critical protection of sensitive data within these organizations. Consequently, a niche group of PSA vendors have emerged to serve PSOs in the small to medium business (SMB) market.
For professional services organizations (PSOs) that have limited resources and limited information technology (IT) infrastructures, the ASP model represents an attractive offering. Smaller PSOs may benefit from the quick deployment and affordable initial price point provided by hosted PSA solutions. In addition, increased security measures have ensured the critical protection of sensitive data within these organizations. Consequently, a niche group of PSA vendors have emerged to serve PSOs in the small to medium business (SMB) market.
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