Application service providers (ASPs) are the latest twist in the ongoing development of outsourcing as a means of deploying business applications and CMAC is again on the cutting edge of technology. Outsourcing business applications reduces the burden on internal information systems (IS) resources; lets organizations use new business applications faster; and enables a smoother and more predictable cost model for running the applications over time. CMAC ASP combines traditional outsourcing principles with the Internet to offer a compelling alternative to buying shrink-wrapped software and implementing it in-house. Renting applications for a monthly fee from an ASP is certain to be part of the future of every business in the Internet age, so now’s the time to understand how CMAC ASP-based outsourcing could figure in your company’s technology planning.

A Brief History of Outsourcing
In the early years of business computing, outsourcing was known as "time-sharing." Expensive and complex mainframe computers were beyond the reach of all but the largest corporations. Consequently, many businesses shared the processor time of an off-site mainframe that was managed by a third party. This time-sharing, or "bureau," service typically rented the mainframe for relatively easy-to-manage tasks, such as payroll processing or receivables billing. Mainframes were used mostly for number intensive data processing rather than managing complete applications. When affordable minicomputers and personal computers arrived on the scene, demand for time-sharing dropped, and many processing tasks were brought in-house.

Time-sharing was not scaled back because it was a bad idea, but because PC technology reduced the costs of processing tasks internally. The practice of outsourcing tasks that are not part of an organization’s core competency remains a sound one. However, today’s business environment calls for timely, interactive access to applications and management information, something time-sharing lacked. Until the Internet came along, there was no cheap, nonproprietary means for a desktop computer to communicate with an off-site application host system and no standard client environment that could interact with the remote application.

The Internet provides a publicly accessible infrastructure that connects users to off-site application servers. Desktop Web-browser software provides a standard way to interact with an application hosted on a Web server. And neither the Internet nor browser software adds much cost to the outsourcing equation. Using this technology, CMAC is providing the framing industry "rent-an-application" services for its powerful, industry leading distribution system, Access by CMAC..

What Is the CMAC ASP?
Conventional ISPs (Internet Service Provider) manage Web servers and e-mail servers that are connected to the Internet. These servers host Web pages for businesses and individuals and route e-mail messages. The CMCA ASP is similar to an ISP but rather than hosting e-mail and web page services, we host our powerful Distribution Software, Access by CMAC, from our General Ledger and Payables module up to our full enterprise resource planning (ERP) suite. In addition to these powerful programs, CMAC ASP also hosts our powerful Cold Storage system, COSTOMS, providing powerful, cost effective solutions for public cold storage facilities across the country.  CMAC ASP customers can interact with their remotely managed application module or suite of modules via Web-browser software on an anytime, anywhere basis.

Simply hosting the application software remotely is only part of the job of CMAC ASP. CMAC ASP takes care of the daily backup and data storage of the software as well as the necessary operating system and hardware upgrades that are necessary to keep the application running at peak performance.  We take the responsibility for the hardware and application and let you concentrate on your business, not your computer. Buying prepackaged applications for in-house use, rather than renting them over the Internet, may become a thing of the past.

CMAC ASP Outsourcing Benefits
Outsourcing something like an ERP (Enterprise Resource Planning ) application to CMAC ASP has many benefits that apply to any type and size of business. CMAC maintains the hardware at our facilities required to efficiently host our powerful and complex applications and removes the need for companies to buy, maintain and upgrade in-house hardware. CMAC will make sure that the latest versions of applications are available to enterprisewide users without the need for costly site-by-site in-house upgrades. Using the CMAC-based ERP system also means that the only client software required on the user’s desktop is a Web browser, which eliminates the need to manage client software on a desk-by-desk basis. These three benefits alone could reduce the staff needed to manage an in-house ERP system by one or more full-time positions.

Staff cost reductions are not the only reason why CMAC outsourcing is attractive: CMAC ASP customers can sign up new users or workgroups for the application at almost a moment’s notice without the need for complex infrastructure and implementation-resourcing planning. New users can access the application without expensive upgrades to the local technology environment. This means businesses can get new users running faster; can bring on more users from remote offices more quickly; and can adapt more easily to merger and acquisition activity. Small businesses and geographically dispersed alike can capitalize on the benefits of this technology. The basic pricing model of the CMAC Access application, which includes an initial setup fee plus a monthly rental fee per user, simplifies cash flow management. The fees don’t change from month to month because such variables as cost peaks due to upgrades are factored into the cost. Small businesses can afford big-ticket applications that would be too costly to buy outright and implement. And CMAC ASP clients don’t need to worry about operating system, database or application user-license fees and compliance because CMAC ASP bundles all the license fees within the single monthly fee.

CMAC ASP Technology Requirements
While the technology requirements for running an outsourced application over the Internet is rather daunting for CMAC, they are relatively straightforward for our users.  Your company should need no in-house application servers or database servers to support the application. The CMAC ASP demands nothing more than a Web browser on each device (PC, laptop) that needs access to the application. Clearly, every user of the outsourced application requires secure access to the Internet and, ideally, should have a full-time, high-speed connection using a local ISP.