ON-DEMAND SERVICES

Abbreviated as ODS, a third-party entity that manages and distributes software-based services and solutions to customers across a wide area network from a central data center.

In essence, ODSs are a way for companies to outsource some or all of their information technology needs.

The Web and the Internet began to really heat up and receive significant attention starting around 1994. Initially, the Web started as a great way for academics and researchers to distribute information: but as millions of consumers flocked to the Internet, it began to spawn completely new business models (Amazon, Ebay).

The ODS model can be extremely appealing to businesses – especially small to mid-size companies and startups, because it can drastically lower the costs of software and servers.

How it works.

DEFINING AN INTERNET ODS:

• The ODS owns and operates software applications.
• The ODS owns, operates and maintains the servers that run the applications. ODS also employs the people needed to maintain the applications.
• The ODS makes the applications available to customers everywhere via either in a browser or through a “thin client”.
• The ODS charges for the applications either on a per-use basis or on a monthly fee basis.

ADVANTAGES OF ODS

• For small businesses and start-ups, the biggest advantages are low cost of entry and, in most cases, an extremely short setup time.         
• The pay-as-you-go model is often significantly less expensive.
• The ODS model, as with any outsourcing arrangement, eliminates head count. IT headcount tends to be very expensive and very specialized, so this is frequently advantageous.
•  The ODS model also eliminates specialized IT infrastructure for the application as well as supporting applications.
• The ODS model takes the work and complexity out of any software application upgrades, system maintenance and secure backups. The ODS has the responsibility to keep the applications you are using current.