Pricing Model

As outlined above, ASPs have several different pricing models. Application vendors like Oracle have a business model where you buy the software license, pay the maintenance fee, and then pay them to host your application.

Corio, USi, and others allow you rent the application and hosting services for a monthly fee. Remember that in almost all cases, you pay for setup and implementation costs. With certain ASP providers, these costs can be almost as expensive as if you hired your own systems integrator. Be careful to evaluate the details carefully before you sign any ASP contracts.

The next-generation Web services vendors such as Salesforce.com, UpShot, and Salesnet provide subscription-based pricing that is typically much less costly ...

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