ASPs and the Value of Web-Based Accounting Services

Here's a story about a company in search of a way to enter the fast lane of the ASP (Application Service Provider) superhighway.

Insilicon manufactures software that gives a computer chip the ability to communicate across various platforms. The company has outgrown its current accounting system and looked for the means to automate its systems via the Internet.

In many ways, Insilicon represents the growing number of small businesses who are discovering the benefits of ASPs--renting applications from companies rather than buying an accounting system and installing the software on the company's servers or systems.

In this case, Insilicon is interested in the services provided by Intacct Corp., which can provide a Web-based accounting service for as low as $50/month for two users. Additional users only run $5 each per month.

Insilicon also realized that a solid solution like Quickbooks might have been good for them at one time, but as the company grew, a system much more substantial and designed for higher volume fit the bill much better.

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