Service providers and alphabet soup
 
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Outsourcing various elements of IT is a concept that has been around for a long time. Over the years, the names have changed numerous times - sometimes this reflects a variation in the services offered, and sometimes it's a change in name only.
Terms used over the past 20 years have included service bureaus, time sharing service providers, network service providers (NSP), ISPs, managed application providers, application service providers (ASP) and, most recently, management service providers (MSP). All involve a vendor providing some set of IT services to users while managing their IT functions. Some of these terms have gone by the wayside, including service bureaus, time sharing providers and managed application providers, while there are overlapping uses of others. According to recent Enterprise Management Associates research, there is still a lot of confusion among users about the terms, the services offered and the providers themselves. There are also some interesting changes happening in the outsourcing and service provider arena overall. Before discussing those changes, it seems worthwhile to set some definitions. First, the term "service provider" itself is sometimes used synonymously with a specific type of provider, typically the NSPs. The NSPs are the providers that came out of the telephone company market and currently deliver managed WAN services and a variety of other network-oriented services. The NSP market is now fairly evolved, with management software and services included as part of the service offerings; service-level agreements are usually part of a contract. NSPs include vendors such as MCI WorldCom, Sprint, Qwest Communications, AT&T and the like. Sometimes, the term service provider is used more generically to mean all service providers, also referred to as xSPs. This could include NSPs, ISPs, ASPs and several newer variations - storage service providers and several flavors of MSPs. In some cases, delivery of service may include combinations of xSPs as partners. An application may be hosted on an NSP's network infrastructure (sometimes also called an application infrastructure provider), integrated and delivered by an ASP. The storage would be managed by a storage service provider, while the security would be managed by an MSP focused on security. In other cases, the process may simply involve buying from a single ASP, sometimes called a pure-play ASP, including such vendors as FutureLink or USinternetworking. In general, ASPs are providers that deliver an application, generally over the Internet, on a rental basis. Some provide a basic set of applications, ranging from standard Microsoft or Oracle applications such as e-mail or simple database applications to customer relationship management and enterprise resource planning applications. Others might focus on specific vertical applications. Varying degrees of customization are provided, along with varying levels of integration between the applications.RELATED LINKS
Dennis Drogseth is a director with Enterprise Management Associates, a leading analyst and market research firm based in Boulder, Colorado, focusing exclusively on all aspects of enterprise management. Dennis has extensive experience in network management platforms and products and is researching trends in management software and changing IT roles internationally. His 18-plus years of experience in high-tech includes positions at IBM and Cabletron. He has been quoted in the press and is a speaker at industry events. He can be reached via e-mail.
Audrey Rasmussen is a research director with Enterprise Management Associates in Boulder, Colorado, a leading analyst and market research firm focusing exclusively on all aspects of enterprise management. Audrey has more than 20 years of experience working with distributed systems, applications and networks. Her current focus at EMA is e-business, SMB/SME and MSPs. She can be reached via e-mail.
Enterprise Management Associates in Boulder, Colorado, is a leading analyst and market research firm focusing exclusively on all aspects of enterprise management software and services.
Not biting? Our exclusive survey shows market confusion and security concerns are the top two inhibitors to application outsourcing.
Network World, 05/15/00.
