Evolution of Application Hosting Services

Application Hosting Services has evolved from the days of service bureaus providing services and facilities’ management, to software support and integration, and to the present days of total solutions management.

Early nineteen seventies saw organizations outsourcing Information Technology and programming projects on a contract basis to corporations specializing in providing such services and who owned the expensive hardware and support systems required for such purpose. Later on, with the development of low cost computing machinery, organizations began doing their Information Technology related work on premises.

In the nineteen nineties, with the rapid growth in the computer networking arena, Information Technology outsourcing resurfaced again, this time to address the need for specialized services for network management, distributed systems integration, system support, and application development. Outsourcing contractors began providing total solutions to the organizations’ Information Technology needs. Experts from the outsourcing companies were routinely deployed at client locations and onsite work contributed to a major chunk of outsourcing revenues. With the software systems becoming increasingly complex, there has been growing demand in expertise for software systems integration.

In the early days, outsourcing decisions were two fold – ‘make ‘or ‘buy’. A big factor that influenced the outsourcing decisions was the motivation to outsource – outsourcing results in significant cost reduction and better fulfillment of organizations’ needs.

With time, outsourcing of application has become an essential part in the Information Technology framework. Application Hosting Services have become a constant source of revenue to both the Application Service Provider (ASP) and the client organizations. Client organizations get reliable support and can make application outsourcing a long term contract.

Using Application Hosting Service Providers to address the Information Technology needs, organizations leverage benefits in cost, marketing time and effort, being able to access and utilize the technological edge and specialized problem solving expertise of their partners.

The Application Hosting field has come a long way from the early days of outsourcing when clients dictated all aspects to a more realistic view which is good for both the client and the Application Service Provider (ASP).

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