Failing ASPs Hurt Customers

from the ouch dept

One of the big problems with the ASP model of software is that if the company providing the software goes out of business the customers are totally screwed. Suddenly they lose all their data and applications. At least with an installed application, the product will keep working even after the provider goes out of business. This simple fact may be hurting the ASP business significantly.
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  1. identicon
    Ryan, 20 Feb 2001 @ 7:45pm

    SLA's

    When I helped set up the ASP business unit we had to include a safety catch in the service level agreement that if the company went bankrupt they would get a copy of all the necessary software to prevent a total loss of service (which made it much safer for companies to migrate their systems to an ASP model).

    link to this | view in thread ]

  2. identicon
    mhh5, 21 Feb 2001 @ 1:42am

    Re: SLA's

    Yeah, I believe we covered the problems with ASPs in an eariler installment of techdirt.... There are usually escrow agreements or other arrangements... But it must still be pretty inconvenient no matter what sort of legal arrangements you've made....

    link to this | view in thread ]


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