The Application Service Provider (ASP) Model

What is the ASP model?

The ASP model is a software installation model where applications and data are hosted and maintained at a remote site by the vendor and accessed by the customer via thin clients (generally web browsers).

What are the benefits to the customer?

• Zero installation and maintenance on client machines
• Client computers never need to be upgraded
• Outreach services are automatically available
• Server infrastructure and IT support is outsourced
• Take advantage of economies of scale previously available only to larger enterprises
• Software upgrades require no client action
• Because the application is not physically installed at the client site, a license agreement is not appropriate. A subscription pricing model is far more appropriate, which avoids large initial outlays. While this is to some extent a semantic distinction (after all, a 'setup fee' can be used to replace the 'licensing fee'), the ease of implementation in an ASP model makes a subscription pricing model a viable option. We are pleased to be able to offer Aquifer under a subscription model, which greatly reduces your initial outlay. While we're confident that you'll love Aquifer, this pricing model also gives you the peace of mind of knowing that if you aren't satisfied, you'll be able to pull out without sacrificing a huge licensing fee. This licensing fee frequently locks the customer in for many years even if they are very unhappy.

If the application is a native web application (like Aquifer) you also get the following benefits:

• High scalability. This minimizes the cost for the vendor which can then be passed to you.
• Minimal user training. Because web applications are based on a consistent and simple request/response model and utilize a small set of simple UI resources, and because many users are already experienced and comfortable using web applications, they require much less training than equivalent client/server applications. If a user is comfortable using Amazon.com or Ebay, they should have no trouble learning Aquifer with the most minimal training.

If the benefits of the ASP model are so compelling, why has its adoption been so tepid in the healthcare market?

There's no question that while the ASP model has been heavily hyped by healthcare software companies, the bloom is off the rose. This is in part due to the unreasonable claims made by the vendors, who saw it as a magic bullet but did not really understand it. They were simply not in a position to take full advantage of ASP. The majority of healthcare applications aren't web-based applications but applications that (at the client side) run under Windows or DOS. The most popular means of making Windows and DOS applications available under an ASP model is through a technology called terminal services, with the most popular implementation being a product called Citrix Metaframe. Terminal services allows multiple sessions of an application to run on a server or server farm while sending screen updates to and accepting input from a remote client. While Metaframe is an outstanding product in that it even makes the option available, many of the advantages of the ASP model are greatly diminished when using it. The bottom line is that the economic advantages of ASP are almost totally wiped out. Click here to find out more.

There is another issue that has been bedeviling both native web-based and Metaframe-enabled ASP implementations. Very few real-world healthcare software implementations involve a single application in isolation. Generally, different applications need to be interfaced. This is a problem if the applications aren't all hosted by the same ASP. Up until recently, interfacing over the Internet had a number of very difficult technical and security hurdles to overcome.

Does Aquifer resolve these issues?

Completely. Because Aquifer is a native web application, there is absolutely no additional licensing cost, so the economic benefits of ASP are fully preserved. As for interfacing issues, Aquifer utilizes a new technology has recently come on the scene that addresses the technical and security issues of interfacing applications over the Internet. This technology is known as web services. Web services allow a service to run on the Internet and communicate with other applications and web services via secure, encrypted XML messages. If it is desired to interface Aquifer with an application that is installed at the client site, a small application will be installed at the client site that communicates with a web service at the ASP site. This application is essentially an HL7/XML converter, converting XML messages from the web service into HL7 messages for the application(s) being interfaced, and converting HL7 messages from the application(s) into XML which will be sent back to the web service. This web service is then responsible for communicating this information to Aquifer.

Solventus believes that the economic advantages of using Aquifer under the ASP model are overwhelming, and we prove it by passing the savings on to you. We still offer Aquifer with an on-site installation option, with the traditional license fee and maintenance fee pricing model at prices that are still very attractive compared to our competitors. However, we do so mainly to serve as a contrast with the ASP model.