What to look for
Don't get caught in the ASP trap. Here are five ways to make sure you get what you pay for with a service provider before you sign a long-term contract.
- Check for battle scars.
Ask for a complete customer listâ€"and check those references. Would they use that ASP if they had to do it again? - Uncover hidden expenses.
Find out if prices go up if your company grows or switches to a new application. - Rattle the piggy bank.
Request copies of the ASP's financials. What are its earnings compared with debt? Does it have enough money to stay in business for another four monthsâ€"or four years? - Do a background check.
An ASP is only as good as its worst partner. Make sure a flaky partnerâ€" whether providing infrastructure, data storage, or other technologyâ€"doesn't drag you down with it. And be sure to tour the data centre. - Put it in writingâ€"and plan your exit.
Solidify your contract in a detailed service-level agreement. Put performance fees at stake and demand cash back when your terms aren't met. Be sure there aren't any penalties for ending the agreement earlyâ€"and clarify termination remedies in the contract.
