Construction Software Buyer's Guide

Locally-hosted software vs. ASP

Another important decision to make when choosing construction software is whether you want to run the software locally, on computers in your office, or use a hosted version that you access via the Internet.

Locally hosted software
Most construction software 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. Sometimes called a client-server configuration, this setup ultimately gives you the greatest control over the system. In some cases, local solutions may also offer more extensive feature sets than ASP versions.

However, installing and maintaining the software requires technical expertise. In addition, keeping the data in-house gives you the responsibility of creating daily backups and securing the system against hackers and viruses.

If you choose the local hosting route, the majority of your costs will be tied to the upfront purchase and installation fee, and new hardware if needed. You may also pay smaller ongoing fees for support and access to upgrades.

ASP-based solutions
Hosted versions, or application service provider (ASP) solutions, provide some distinct advantages but aren't appropriate for every business. In an ASP solution, both the application and all your data reside on the vendor's servers. Your staff accesses the service via the Internet using a web browser or specialized client software.

The main advantage of ASP solutions is that they are maintained by IT professionals at the vendor's office. Multiple layers of firewalls and security, uninterruptible power supplies, failover (instant switching from one computer to another in case of a crash), and reliable backups are all standard operating procedures for these vendors. Together, they virtually guarantee that your application and data will always be secure and available.

ASP solutions offer another big advantage for remote workers. Because the system is accessed over the Internet, employees with a wireless connection or network access on-site can use the full features of the software, the same as if they were at the office.

The biggest risk of online solutions is that they require a broadband 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 always be able to access the system. These types of outages are quite rare but possible.

A more common connectivity problem is for workers at remote job sites: wireless access isn't always as consistent as your internal network. Look for systems that let remote users enter basic data offline, then upload it when a connection is available.

Payment for ASP solutions is based on a smaller setup fee and ongoing monthly payments based on usage, a percentage of the project revenue, or a flat per-project charge.

Which is right for you?
Locally hosted software is a much more familiar setup to most users, and the most popular choice for construction firms. Because the data is so critical to day-to-day operations, many firms are simply not comfortable having it reside outside of their networks.

However, the ASP model is gaining popularity, particularly among smaller firms. Here are some areas you should consider when deciding between ASP and client-server construction software solutions:

• Do you need remote access? ASP solutions make it easy for off-site employees to access the software while locally-hosted solutions may be expensive and require difficult configuration. Consider remote office access and job site access separately, as they have different requirements.
• Are your employees tech savvy? If your IT staff already runs a company network, they should be able to maintain your chosen construction software. Smaller companies with little to no computer expertise are probably better off choosing an ASP solution.
• What's your budget? While an ASP model requires a lesser up-front investment, the ongoing costs of ASPs catch up to and can even surpass those of locally hosted versions.
• Can you pass on the costs? The general conditions line item commonly found in construction contracts can often be used to cover the costs of ASP services that are billed on a per-project basis. This gives you get the benefits of the system without any of the costs. And if your contract specifies "costs plus," you'll get your markup on top of what the ASP charges you.

You can also start off with a hosted service then move to an in-house solution: ASPs should offer a seamless migration path that allows you to easily export your data. Some vendors offer both hosted and in-house systems, making the transition easy. This approach can be an easy way to get started without committing fully to either option.