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.

2 Comments | Leave a Comment..


If you liked this post, you may also be interested in...
 

Reader Comments (rss)

(Flattened / Threaded)

  1.  

    SLA's

    identicon
    Ryan, Feb 20th, 2001 @ 7:45pm

    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).

    reply to this | link to this | view in thread ]

  2.  

    Re: SLA's

    identicon
    mhh5, Feb 21st, 2001 @ 1:42am

    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....

    reply to this | link to this | view in thread ]


Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Save me a cookie
  • Note: A CRLF will be replaced by a break tag (<br>), all other allowable HTML will remain intact
  • Allowed HTML Tags: <b> <i> <a> <em> <br> <strong> <blockquote> <hr> <tt>


A word from our Sponsors...
Follow Techdirt
Flattr rss rss
From the Techdirt Archive...
A word from our Sponsors...

Close

Email This