Disadvantages of ASP Model (Business On-Line)

The disadvantages of the ASP model come from your relationship
with the hosting company and the loss of control and flexibility
 you need to meet current and future business requirements. 
Evaluate the following issues before considering  the Business
On-Line service: 

A.The solution might proprietary. If you want to rent the ERP and e-commerce applications, you

 must get them from specific vendor partners. 

B. Hosting ERP applications is still a relatively new business for it. If it can't make its normal 

growth rate and profit margins, it might not sustain the business as you expect. 

C. You are locked into specific applications.  It will be hard to switch vendors because you would

 have to switch applications, too. 

D.You will be restricted to the types of customizations and extensions available. Are there 

additional pieces of software you need to run your business? 

E. There will be little price competition or flexibility after you commit. 

F.You will be locked in to a long-term contract with limited flexibility to change or terminate.

G. Application performance issues might be a concern.

 H. Consider the ASP capability to implement and administer the applications. 

I. When you use an ASP, security concerns must be resolved. You must be sure your business 

data remains private and secure.

J.The ASP business model is unproven. (If it doesn't work out, where are you in three years?)

 Next :

15. ERP is Online Transaction Processing (OLTP) software

16. Advantages of the ASP model ( Business On-Line)

18. ERP Vendors in 2005