Customer Checklist

2. Snoop. Gather data about potential ASPs--their size, reputation, market experience and existing customer base. Do they serve other customers in your market?

3. Evaluate architecture. Assess the flexibility and scalability of the ASP's back-end architecture. Can the ASP facilitate rapid, tight integration? Check to determine the ASP's usage of technologies such as XML and Java.

4. Perform a data center check-up. Find out whether the ASP has its own data center or if it outsources to a third-party provider. Either way, evaluate the infrastructure on which your solution will run.

5. Demand recovery and backup plans. Ask for specifics, including the method of archiving and retrieving data, off-site storage and backup, and alternate power and disaster recovery.

6. Evaluate security. Remember, your business systems will reside on the Internet. Make sure the ASP takes security very seriously. Does it offer any added services to help protect your data?

7. Service and support are crucial. Service is the key to an ASP. Make sure the ASP provides dedicated management and 24/7 help desks, and look into its geographic coverage in your area.

8. Check pricing. Pricing in an ASP model can be as confusing as a phone bill. Hidden costs lie in wait for the unsuspecting user. Ask again and again: Do network connections or integration cost extra? If you decide to bring the solution in-house at a later date, what will the transition cost?

9. Read the fine print. Remember that a service level agreement (SLA) is a contract and doesn't always work on operant definitions. Nail down SLAs and penalties in writing before proceeding.

The ASP model offers tremendous value for certain organizations. Just make sure you're one of them--then make sure you choose wisely.