ASP v. client-server SFA

An important decision to make when choosing sales force automation software is where you want the software hosted. If you run it in-house, the solution is usually referred to as a client-server system; vendor-run applications are referred to as application service provider (ASP) solutions. Both options provide distinct advantages: consider which are more important to you.

Client-server solutions Most of the software used today is locally hosted - the program runs on your computer and stores the data either on your hard drive or on a network server in your office. This familiar setup gives you the greatest control over every aspect of your SFA system.

Having this total control can be a drawback, though. It takes considerable expertise and effort to maintain the customer information database and keep it secure - and often requires significant expense for consultants and hardware. In addition, keeping the data in-house gives you the responsibility of making regular backups in case of a system crash.

Client-server proponents point out that SFA applications are built on proven software that is highly stable and requires little database maintenance. And you can create scheduled backups that copy your data to off-site computers fairly easily. (Interested in remote backup services? Get a free quote today) Plus, there is the bonus that because the data is local, overall application speed tends to be higher, especially when dealing with large amounts of data.

If you choose a client-server route, you are more likely to pay a lump sum to buy your software outright, then a small ongoing monthly fee for support. You'll also have to buy a high-capacity server to run the application, which can add a $5,000 hardware bill to the total cost of ownership of your SFA application.

ASP solutions
In an ASP solution, both the application and data reside on the supplier's servers, and your sales staff gets access through a regular web browser. In some cases, client software on your computer is used instead of a browser, but the critical data still resides on the vendor's computers.

Both ASP flavors provide the same main advantage: the database is maintained by IT professionals at the vendor's office. Multiple layers of firewalls and security, uninterruptible power supplies, fail-over (instant switching from one computer to another in case of a crash) and reliable backups are all standard operating procedures for these vendors - and they combine to virtually guarantee that your data will always be secure and available.

The biggest risk of online solutions is that they require an active Internet connection. Since no Internet connection works 100% of the time - your internal network may fail, your ISP may experience an outage, or an Internet worm may cause congestion - you may not be able to access your data at all times.

With online providers, payment is more likely to involve a small setup fee and then ongoing monthly payments based on usage.

Which is right for you?
Right now, many business executives are more comfortable with in-house solutions. However, next-generation IT staffers who are most familiar with the benefits of ASPs are gaining more of a voice in many companies, so the balance is expected to swing towards ASPs in coming years. Here are some areas you should consider:

• IT staff. If your business has an in-house IT resource, a client-server solution may be your best choice - but make sure you involve the IT staff in the purchasing decision. Smaller businesses with little to no computer expertise are probably better off choosing an online solution.
• Customization. ASPs can make basic changes in appearance and functionality in no time, in effect giving you more control over the application than you would get from an internal IT team. However if you need extensive customization and development - more than just naming fields and changing screen layouts - client-server can provide more flexibility, although you will likely wind up paying a premium for the extra work.
• Sensitive data. If your sales information includes sensitive data such as Social Security numbers, banking records, or other information that you are legally required to protect, you may want to keep it in-house so you can be directly responsible for it. However in some cases, ASPs can provide better security than you could in your own data center, thanks to more layers of security and larger IT staffs.
• Distributed sales force. ASPs are definitely the right choice if you have a widely-distributed sales force: your entire team will have access to the same data and applications from wherever they are, without any hassles of logging into the company network or setting up VPNs.

Since both options provide secure, reliable tools for your sales force, a final way to make the choice is to consider which of the potential downsides you fear more: being unable to access your data while your Internet connection is down, or losing data and time because your server crashes.