DealersEdge Professional Forums

Has anyone converted from an inhouse system to an ASP. What are the pro's and con's. Is it saving you money over an inhouse system when you figure in the cost of the data line. Is there more or less downtime?

We just visited a large ADP dealership that had switched from a in-house ADP to ADP-ASP. The connection is via Frame Relay. They loved the new system. When I asked why, they replied that the processing speed from the box was much faster with the ASP. What I can't tell you is how the ASP would have compared to a new APD in house box.



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Frank Burrows
Automotive Business Solutions LLC
frank@autobusiness.org

We have been working with several large dealer groups that have converted to ADP's ASP and once the connectivity issues were solved with band width, routers, and the frame relay, it was very good. A lot of the typical maintainence that most dealerships assign a person to do are done by ADP, such as loading labor time guides, parts masters, and such. Also, while I can't verify that it is being done, I would assume that ADP runs clean up routines and file resizing because one thing we have noticed is that the system runs consistently the same, even over several months. Basically, except for your terminals, printers, and communication hardware, you are out of the Server maintainence business.... I have no complaints at all about it....

Several dealers have said they were actually quoted a higher price for ASP rather than outright purchasing a new Server because the fees were too high monthly. Again, this is just feedback without actually seeing the contracts.

So, for what it is worth, if you want to disband an IS department and let ADP handle the Server and software maintainence of your system, it still has the same programs whether your Server is on sight or in Elk Grove at ADP. Again, the biggest advantage to speed seems to be the band width that you are assigned through the frame relay and router.

Hope it helps....

Chuck Hartle'
PartsEdge

[This message has been edited by Chuck Hartle (edited 02-06-2002).]

Chuck,

I represent a company that uses a lightning-fast PC server. Cost of the server is about $2000 to 4000, dependent on needs. This cost includes on-site maintenance. Most ADP and R+R customers are used to high monthly maintenance on their computers, and the ASP represents a good alternative, especially if they have more than one store that they want to share their data with. However, there are still some big concerns about using an ASP. First, the dealership(s) are entrusting their data to an off-site system. Also, what happens if there is a problem or slowdown in the communications link? Finally, what happens if the dealer wants to switch system vendors later? Do you think that ADP or R+R will allow an uninterrupted, non-corrupted transfer of data to the new system? Interestingly enough, ASP's were around 25 years ago. R+R had local VIM II sites that area dealers were hooked up to by telephone line. R+R introduced the VIM III ages ago as an in-house solution. Why? Because dealers wanted to have full control of their data, and computers had dropped enough in price so that it was affordable to the individual dealership. Have we gone full-circle?

We are looking very seriously at an ADP or R&R ASP. There are price differences between in-house and ASP and some other pros and cons, but the best pro's are:
1)Speed
2)Not having to change systems after 5 years.
3)Don't need a Systems Administrator.
4)Keep the latest updates and software.
5)Will operate more than one store and from different locations without loosing speed.
6)Don't have to deal with lousy field support except for laser printers and not even that if you buy R&R.
7)Always have latest server in place with the correct amount of space,etc.
8)They do all the labor time guides, price tapes, etc.

Hopefully in six months we can tell you if we made the right choice.

I guess we have gone full circle when you come to think about it. However, we have also seen the creation of complete IS departments in dealer groups that have evolved out of the incredible amount of information that the dealership is able to secure and utilize. Also, the difference in the full circle spectrum has to be the incredible advancements that have been made in the communication technology over the past several years... ie hubs, routers, frame relays, T1 lines, DSL, and the internet.

I personally don't really have a specific route I would choose on this issue, except to say that either way works. As SLILLY points out; software updates are basically automatic and consistent compared to the "when you get around to it" at the dealership level. As I mentioned in the previous posting, we have several stores we work with on ASP and the connection speed and reliability are exceptional.

The issue of having your information secure and available for only your dealership still holds true based on the contract and user id information. To me, it is really a matter of personal preference and both ways will work out....

Chuck Hartle'

In response to LBBarrow,

Yes, we have indeed gone full circle. But I believe the resistance to ASPs 25 years ago was at the very least due to unreliable and slow connections.
ADP's data center, where our ASP servers are stored, has the highest class of security and reliability. Not only the physical plant, but the data connections to the internet. We provide not only high quality fractional T1 connections to each dealer location but also backup ISDN lines that kick in automatically if the primary connection is down. In addition, we provide continuous monitoring of these connections using our Enterprise Observer network monitoring software to ensure the highest level of performance.

The tape backup systems on all systems can be encrypted to prevent data conversion, so a competing vendor could not successfully convert data to their own system, even if the source was a stand-alone. Is it in a vendor's best interest to do so and lose any hope of regaining the client at a later date? And yes, if the dealer does choose to switch from ADP in the future, we will provide the dealer access to his data in
the format he prefers.

As for control of data, every time support people access a system, they have access to the client's data. This is from the smallest
PC repair center, to the largest corporations. So if you cannot trust them with your ASP system, why should you trust them with your stand-alone?

[This message has been edited by Ted@ADP (edited 02-12-2002).]

After attending NADA, there seems to be some confusion in the marketplace surrounding ASP. One of the largest areas of confusion is over pricing. All of our models show that an ASP solution will cost between 30% to 50% less than an in-store based solution. One of the main areas that allows for this decrease in cost is that multiple clients can be hosted on shared servers. EDS has been providing ASP solutions to 1,000's of clients worldwide for 40 years.

The question that arose at NADA by a number of dealers visiting the EDS display was that with other providers offering ASP they believed they had to purchase a server that was housed in the providers data center, and that multiple stores, owned by different dealers, could not share a system. I do not know if this is true or not true, but if this is the case, you will never be able to get the maximum efficiency from this model, because all that has occurred is a shifting of cost from one entity to another. In addition, it should be the ASP providers responsibility to ensure that leveraged systems have enough horsepower for future growth and systems changes. If a dealer has purchased a specific box to support them, I think the dealer maybe surprised several years from now when they are told their server needs an upgrade and the dealer is responsible to foot the bill.

EDS is in the process of migrating 100's of disparate dealers to several large processors. In addition, as we move our clients to an ASP mode, we enact very defined service level agreements so the client knows exactly what to expect in terms of areas such as system availability, speed, etc. These are critical pieces of purchasing a system or solution delivered via ASP and should be included in any contract that a dealer signs for these types of offerings.

Any feedback on any of the items discussed in this thread would be appreciated.

This is an intereting topic we have all heard alot of feedback on the last couple of years. The sucess of any ASP is the integrity of the connection to the ASP. After hearing countless horror stories about the connection piece, I am not sure I would trust having access to my data via ASP. I agree with the point that "are we just shifting the cost from one point to another?" I suspect so. R&R announced that in Spring of 2002 the will now be doing electronic updates remotely to customers onsite servers (as long as they are on 4.2 or higher.) At NADA the announced Generations Series that will utilize the current ERA Server but allow adding on of modular web based apps. that will integrate with ERA. I think you are doing the right thing looking for collective feedback with so many technology conciderations today.
Good Luck!

Your right, the connection is critical. That is why when we design an ASP solution we have certified engineers that design and verify all the componentry, network, hosting, fail-over, disaster recovery, data base integrity, security, etc.

This is where a company such as EDS has a great deal of strength and advantage. This is not a new game to us. We run customers such as the U.S. Government, Dow Chemical, The British Taxing Authority, Most Major banking institutions, and GM in this fashion, in addition to literally 1,000's of others and tens of thousands of applications. Dealers should not be scared of the technology. They do need to be concerned in relation to the experience and capabilities of the company they select to provide it. In addition, they need to ensure that they get committments from the supplier in terms of service level agreements that cleraly define the metrics around what they will receive, thus the client can be assured everyone is on the same page in terms of living up to their end of the contract.