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Network architects have better things to do than manage their company's IT applications. Yeah, right-and when they get done explaining that little insight to the CTO, they'll have plenty of time to scan the want ads and contemplate an exciting career as a heavy-equipment operator. Granted, it's a controversial concept. It's also the driving strategy behind a controversial class of outsourcing companies that are just starting to catch on. They're known as MAPs (managed application providers), and they insist they can offload everything from office automation and e-commerce to back-office processes and vertical market apps.
The MAP hosts and manages the whole package at its own facilities, dealing with dirty work like ongoing support, maintenance, and upgrades. Applications are delivered over the Internet; all an end-user needs is a connection and a Web browser. It's a compelling pitch-especially given the networking industry's chronic shortage of skilled staff. And it's already gained some early advocates. "I've got more important things for my IT staff to concentrate on," says Roger Babb, president of the Babb Companies (Ringgold, Ga.), a concrete and lumber manufacturer that relies on a resource-management app hosted by Multisoft Inc. (Atlanta) to keep track of products and sales. "We couldn't manage the app ourselves because we don't have the in-house expertise," he adds.
The math is equally compelling. Forrester Research Inc. (Cambridge, Mass.) estimates that application services can cut monthly recurring costs by 30 percent to 50 percent.
So where's the controversy? Consider this. Virtually all MAPs claim they staff their help desks 24 by 7. But when Data Comm phoned in to check that someone was really there on a Sunday afternoon and in the middle of the night, some calls were answered by voice mail. That's not going to sit well with a CEO who wants to know why he can't download his e-mail.
What's more, some critics say MAPs can't match the inside track that comes with in-house service. "They don't yet know how to configure applications to meet individual business needs," argues Daniel Sholler, program director at the Meta Group (Stamford, Conn.) consulting firm. "They're too rigid to account for things like customized workflow and approval structures." Others doubt that corporate customers will ever trust MAPs with mission-critical material. "Applications that hold sensitive information will never make it out the door," says Matt Parnell, vice president of data product management at Frontier Globalcenter (Rochester, N.Y.), a long-distance carrier.
Reading the MAP
What corporate networkers need to work out is whether they should be on or off the MAP. The place to start is with the outsourcing providers themselves. Some MAPs are ISPs (Internet service providers) that have teamed with software developers; others are software houses that have hooked up with ISPs. This is more than mere semantics: The core expertise of the dominant partner determines a MAP's strengths and shortcomings.
Then check out what applications are offered. There are four basic food groups: e-commerce (which includes Web advertising and billing), office automation (including e-mail and groupware), back-office (payroll, HR, supply chain management, and electronic payment), and vertical markets (legal, finance, real estate). How much tuning and tweaking is allowed, particularly for back-office apps, and at what price?
Since these services are going to be delivered over the Internet, grill prospective MAPs about their infrastructure. Do they have multiple hosting centers? How hefty are Internet connections and how much spare capacity has been built in? What about peering arrangements with other ISPs to make sure packets don't bog down or get dumped?
Be equally particular about servers. Are they shared or dedicated? Does the MAP mirror them at different sites? Does it use load balancing and traffic shaping to streamline performance? What about VPNs (virtual private networks) to make sure security isn't compromised?
Be sure to heed the cardinal rule of all business deals: Get it in writing. That means SLAs (service-level agreements) that spell out every detail, including penalties for nonperformance.
"People shouldn't subscribe to these services unless they get ironclad agreements on every element of their service package," says Claire Gillen, vice president of the applications and information access software research group at International Data Corp. (IDC, Framingham, Mass.).
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