ASP Exit Strategies

by Lowell Rapaport

Application service providers (ASPs) can be a clever solution for companies that don't have a lot of cash to outlay for high-end applications. With the collapse of the dot-com bubble, however, a number of ASPs have gone out of business or been acquired by larger companies. Even without these vendor travails, organizations might outgrow their ASP and decide to bring their systems in-house.

For these reasons, ASP users must have an exit strategy - a procedure in place for retrieving their data from an ASP's systems.

1. Scrutinize your ASP contract. ASPs may embed provisions in their licenses and contracts giving them intellectual property rights to your data. Not only can this provision make it difficult to reclaim your data when changing ASPs, but it may also make your data vulnerable in case your ASP goes out of business.

2. Revise crucial terms. Be sure to include a provision in your contract that forces the ASP to return your data in some convenient form (such as an ODBC database) if and when you terminate your contract.

3. Finally, maintain regular backups of your data in case the ASP drops its service suddenly and without warning.