Disadvantages of Business On-Line

The disadvantages of the ASP model come from your relationship with the hosting company and the loss of control and flexibility you need to meet current and future business requirements. 

Evaluate the following issues before considering the Business On-Line service:

* The solution might proprietary. If you want to rent the ERP and e-commerce applications, you must get them from specific vendor partners.

* Hosting ERP applications is still a relatively new business for it. If it can't make its normal growth rate and profit margins, it might not sustain the business as you expect.

* You are locked into specific applications.  It will be hard to switch vendors because you would have to switch applications, too.

* You will be restricted to the types of customizations and extensions available. Are there additional pieces of software you need to run your business?

* There will be little price competition or flexibility after you commit.

* You will be locked in to a long-term contract with limited flexibility to change or terminate.

* Application performance issues might be a concern.

* Consider the ASP capability to implement and administer the applications.

* When you use an ASP, security concerns must be resolved. You must be sure your business data remains private and secure.

* The ASP business model is unproven. (If it doesn't work out, where are you in three years?)