12 QUESTIONS TO ASK ANY APPLICATION HOSTING VENDOR
1. What software packages do you offer?
This is an important first question. Your choice of application hosting vendor
is likely to be determined in large part by the software applications it
offers. Make sure you investigate the software carefully to make sure it has all
the capabilities you need. It may seem like less of a commitment when you use
software over the Internet, but you want to make sure your investment in time
and training is not wasted.
2. What performance guarantees do you offer?
Service Level Agreements (SLAs) that promise a guaranteed level of availability
are offered by virtually all application hosting providers. Make sure you understand what is being
promised. Is it your ability to connect to the Internet or is it your ability to
use your application? Find out what happens if the guarantee is not met. Most
importantly, investigate what the application hosting vendor has done to make sure they can deliver
what they promise.
3. How do you maintain security?
The application hosting vendor should have firewall protection, data encryption and virus protection in
place. Get the details of how your software and data will be protected.
4. How do you handle backups and disaster recovery?
You need to make sure that both your data and your software are backed up on a
regular basis. Find out how often and when backups will be made. Where are the
backups stored? Optimally, you want copies available locally so you can be back
up quickly if there's a minor problem. You also want copies sent out of the area
in case of physical disaster like a hurricane or tornado.
5. How do you handle upgrades and bug fixes?
One of the benefits of using hosted applications is that the hosting provider implements
upgrades and bug fixes for you. But that can cause problems if they
automatically install a new software release that has unsuspected bugs. See what
their policy is. Do they implement new releases right away or do they wait
for a short time to get feedback on the quality of the software? And it's best
if they consult you before implementing an upgrade, just to make sure it doesn't
conflict with a major conference or other project.
6. Can my application be customized?
Getting your software implemented fast is generally seen as one of the primary
benefits of having applications hosted. Yet the tradeoff is that you usually have to use the
software as is, out of the box. If you are going to need customization, ask the
application hosting vendor whether this is a service they offer. If they do, find out how much they
charge, who will do the work, and how long this will delay your implementation.
7. What is included in the monthly fee? What is additional?
Some application hosting vendors offer extremely low monthly fees, like $18 per user. Find out what is
included in that fee. There may be substantial additional charges that you have
to pay up front or that get added to your monthly bill. Get a detailed list of
fees so you are not comparing apples to oranges.
8. Who will provide technical support?
Ask specific questions about who will be providing software and hardware
support, what hours/days support will be available, and what procedures you will
have to go through to obtain support. Will the hosting provider offer full technical support, will
you have to go to the software or hardware vendor, or will you have to contract
with a third party? In some cases, the application hosting company may provide a primary level of
support, and you may have to contact the vendor to get harder questions
answered. See if you can find out how many support people will be available and
what their level of experience is with your applications.
9. Who owns what?
Application hosting providers have widely varying policies about who owns hardware, software and data.
Are you buying or renting? Will your software and data be stored on a dedicated
or shared server? A dedicated server will cost more, but you won't be affected
by traffic spikes of another organization. Does that dedicated server actually
belong to you or to the data center? Clarify who owns all the components of your
solution: hardware, software and data. Find out what happens if you cancel your
contract.
10. What experience do you have in my industry?
Some application hosting providers are horizontal, and may not be sensitive to the ways your organization works. Other hosting companies are targeted specifically to a particular industry. Take a close look at where the firm came from and the background of the principals. You'll feel more
secure if they understand your industry and have the financial backing and
commitment to be around in five or ten years.
11. Who are your other customers?
It's always a good idea to talk to other customers and
ask questions about the quality of service the application hosting provider offers and whether
they live up to their promises.
12. What exit strategy do you offer?
You will probably discover that you love running your software over the
Internet. But in case you don't, find out what happens if you
cancel your agreement. Under what circumstances can you cancel? Are there any
penalties? Do you have the option of bringing your applications in house? Make
sure you understand your commitments and what your application hosting vendor can and will deliver.
|
