"An Internet connection is the only infrastructure required and companies are not burdened with the cost or effort of installations, upgrades, backups, licensing agreements and the safekeeping of data," he says.

The ASP model meets many of the special requirements of the local market, according to Karshagen, especially small and medium enterprises (SMEs) who are often unable to make large capital investments in software such as payroll applications and the IT infrastructure they require.

SMEs subscribing to the ASP model are able to access the latest versions of software applications without any additional outlay because centrally updated applications are immediately available to all users.

Improved security is another benefit of the ASP model, Karshagen says, which works in the same way as Internet banking.

"The ASP model is a more secure option than traditional computing because like Internet banking, there is no sensitive information on the user's PC that can be retrieved and abused," he says.

Support and administration costs are also reduced using the ASP model: "A small team of professionals can support a much larger group of users more cost effectively and efficiently," he says.

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