Dictation and the ASP

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An ASP, or Application Service Provider, is a business that provides software or computer based functionality over a network.  Also referred to as On-demand or SaaS, (Software as a Service), it is normal for the provider to issue specific application functionality, for a re-occurring fee, in place of software licensing.

So why have ASP’s gained popularity?  One reason is they rely on a foundational infrastructure that companies are already investing heavily in.  Today a company’s intranet and network infrastructure is among its most important IT priorities.  ASP’s rely on internet connectivity and today most companies view internet as a central business function, which means it is not included as a system cost.  Since servers, data storage and other associated costs are not needed with ASP's, customers have a very predictable expense model.

We know the associated costs of premise based systems can escalate.  In addition to Server and OS costs, a company will likely have database costs.  In addition, along with the server comes business continuity costs like malware protection and backups.  Other expenses included are the cost of IT people, administration training, space for equipment, electricity and software upgrades.  Most, if not all of these costs, including maintenance and installation of updates, can likely be deferred with an ASP.

So how does a Dictation ASP work?  Concepts vary, but it’s pretty straight forward.  In most cases, the exact same functionality that is incorporated into a premise based system can be found in a Dictation ASP.  The individual creating the voice recording may use a variety of equipment including handhelds, phone dictation and Blackberrys.  Jobs are tracked and voice recognition can also be utilized.  Fees for this service are usually predictable and based on the number of users.  There are typically no software license costs or upgrade fees as upgrades are normally built into the user fee.  Since upgrades are performed by the provider, the customer experiences very little hassle. 

Sounds good, right?  Well there are other considerations.  For one, the customer usually has to accept the system as it is without much customization.  Additionally, the provider usually determines when the system will be upgraded for all customers.  Also, since the solution is internet based, if the customer’s connection to the internet is down, some or all of the functionality is likely lost until service is restored.

Is a Dictation ASP right for you, or does a premise based system make more sense?  You’ll need to evaluate the cost versus benefits.  Keep in mind that as the cost of data centers decreases and bandwidth quality of data improves, the viability of this strategy will come around.