Property Management Buyer's Guide

Locally-hosted software vs. ASP

An important decision to make when choosing property management 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 property management 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. 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 keeping the system secure against hackers and viruses.

If you choose the local hosting route, the majority of your cost will be tied to the upfront purchase and installation fee. You may also have to pay small ongoing fees for support and access to upgrades.

ASP-based solutions
Hosted versions, often referred to as application service provider (ASP) or software as a service (SaaS) solutions, provide some distinct advantages, but aren't right for every business. In an ASP solution, both the application and 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, 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. They combine to virtually guarantee that your application and data will always be secure and available.

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.

Payment for ASP solutions is based on a smaller setup fee and ongoing monthly payments based on usage.

Which is right for you?
Locally hosted software is a much more familiar setup to most users, and is by far the most popular choice for property managers. However, the ASP model is gaining popularity, particularly among smaller firms. Here are some areas you should consider before making a decision:

• Are your employees tech savvy? A locally hosted solution may only be an option if you have computer-literate staffers in house. Smaller companies with little to no computer expertise are probably better off choosing an ASP solution.
• Do you need remote access? ASP solutions make it easy for employees at multiple locations or those on the road to access the software exactly as if they were in the main office. Configuring locally-hosted systems for the same access can be difficult and/or expensive.
• What’s your budget? There is a much lower initial investment with ASP models, so it can be easier to get a pilot program going without a significant capital investment. However, in the long run, the ongoing costs of ASPs catch up to and can even surpass those of locally hosted versions.

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

You can also start off with a hosted service then move to an in-house solution: ASPs should offer a seamless migration path that will allow you to easily export your data. Many vendors offer both hosted and in-house systems, making the transition easy. If you’re unsure which direction to follow or you’re not ready to make the full investment, this can be an easy way to get started without committing fully to either option.

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