What is an ASP and why should nonprofits care?

Summary:

Allison Schwein explores the new Internet thing for the year 2000.

Answer:

Note: There is a long list of online resources for fundraising, which
includes more ASPs along with other sorts of providers, in the NONPROFIT FAQ
at http://www.nonprofits.org/npofaq/0/1491.html .

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Allison Schwein (aschwein@inhervisions.com) wrote to CYBERGIFTS (see
http://www.charitychannel.com) on June 9, 2000:
With all the talk of ASPs, I thought I would add some information and try
and summarize the points/ideas/concerns expressed so far.

The ASP industry is growing fast everywhere and the nonprofit sector is
definitely part of this trend. Simply stated ASPs (application service
providers) are third-party entities that manage and distribute
software-based services and solutions to customers across a wide area
network from a central data center.

It means that instead of buying software, you subscribe to a service. The
software and your data is kept onsite with the vendor. It has already been
pointed out that this model has been around for quite a while, what makes it
a hot item now is the internet. With the widespread use of the internet,
there is now an easily accessible way of providing these services.

What does that mean for nonprofits? I think it has the possibility of being
a great solution for nonprofits. The most obvious first target is
contact/donor management and this is where this discussion started. So,
with that in mind...

Pros, Cons, things to think about? A few have been talked about already.
Such as:

1. If your donor database is housed at a third party vendor -
   will it be
   secure?
   This is something we should all be concerned about. Donor privacy is a big
   issue, and with nonprofits getting sued because someone went through their
   trash, found donor contact info, and then hassled the donor... well, 'nuf
   said.
   
   In my opinion, most nonprofits are currently holding their data in a very
   unsecure environment. We all know about the struggle to obtain and afford
   good technology staffing - and without it your computer network is very
   likely an open book waiting to be read by any interested hacker.
   
   It is likely that your organization already works with your donor data in a
   VERY unsecure manner. For instance... how many of you send data files to
   your mail house via email? Something to stop doing if you are.
   
   In defense of the security of data at ASPs I talked about the increased
   expertise at the host provider and the absolute need for them to maintain
   the privacy and security of the data in order to stay in business.
   
   Chris Hanson from The Data Bank seconded my comments with his... "We have
   been hosting organizations databases for over 15 years and provide a much
   safer, secure environment than they could afford or would know how to
   implement. Data mirroring, daily tape backups, triple power and Internet
   connection redundancies, etc..."
   
   The feelings expressed thus far have been mostly positive.... Does anyone
   have more information to add on the security/privacy issue?
   
   
   
   
2. What are the issues around accessibility?
   Henry Lewis asked us to think about this issue... "Also, if it's off-site,
   and your electricity and/or phone lines go down, you'll have no access to
   it. And how many people in your office will want access at the same time??"
   
   Counter: If an organization's electricity goes down.. their not going to be
   doing ANY computing, onsite or off. Phone lines go down very rarely.
   
   What if the ASPs server is down? - In reality, the occurrences of downtime
   with a reputable ASP should be very minimal, perhaps Chris could let us in
   on how often this has been an issue at his company. I think it's safe to say
   that your organizations' computers and/or network is going to be down far
   more often than your ASPs will be.
   
   One thing to definitely keep in mind is that accessibility will be an issue
   if a nonprofit has limited internet access. If an organization has
   networked internet access or several modems, this shouldn't be an issue. If
   anything this can be a real plus. If the computers at the office are down,
   you can go home and work.. in addition there is the ability to get access to
   your information from any location with internet access - such as when you
   are traveling.
   
   Of course, this is also true if an organization has a wide area network and
   remote access capability. But this isn't a reality for many npos quite yet.
   
   
   
3. Obvious Pros
   Several people have chimed in on this -
   
   
   • The latest technology at all times, secure encryption, constant
     database
     management (clean-ups, patches, fixes), reduced need for technology staff
     onsite, increased accessibility....
     
     
   • (the possibility of) lower costs overall, and the advantage of not
     having to
     make a capital investment in the required technology.
     
     
   • The thing I find most appealing about this model is the burden it can
     help
     relieve in regards to technology staffing.
     

So.... what else are people thinking about? Do you think this model would
work
for your organization? Why or why not. Do you have additional concerns?
Are there more pros that haven't been mentioned?


Find out more:

You can find a good definition, that is easy to understand, of ASPs at
About.com:
http://compnetworking.about.com/compute/compnetworking/library/weekly/aa050900a.htm?rnk=r5&terms=ASP

Some thoughts on who will make it and who will not in the ASP industry can
be found here:
Why most ASPs will fail...
http://www.zdnet.com/zdnn/stories/comment/0,5859,2572993,00.html



ASPs I know of in the email/contact/donor management area:

Social Ecology - Headed by Michael Gilbert:
They just launched the newest product in their growing suite - DonorLink
http://www.socialecology.com


thedatabank.com:
http://www.thedatabank.com

DenariOnline:
http://www.denarionline.com/

and of course the one that started this whole conversation,

eTapestry:
http://www.etapestry.com

Allison Schwein,
Cybergifts Co-Moderator, artist/graphic designer
and nonprofit internet provocateur,
Sunnyvale, CA

On June 27, 2001, Lisa Smith sounded this cautionary note:
This is an older article but the subject is in the spotlight right now. I'm not sure I'd agree with the statement about ASPs providing the latest technology all the time. I would expect a higher level than many nonprofits could afford, but I don't know that every ASP jumps for every new technology nor that you would want them to. I also am concerned with all the outsourcing of technology who deals with in house issues? It may save money in terms of the cost of a staff position but I wonder how much time is lost to crashed computers, Word and Window's Annoyances etc. Just something to consider when deciding to use an ASP.

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Posted 6/9/00; revised and updated 6/27/01, 9/30/02 -- PB