Software renting-better business, better environment: the case of application service providing (ASP)

The author analyses the business model of Application Service Provider (ASP) as a less material intensive alternative to traditional computing-a promising example of ICT sector dematerialisation. The article compares the ASP vs. traditional computing models from environmental and business perspectives. The ASP service model has a potential to provide both economic and environmental benefits. By using the results from the available life cycle studies on personal computers the author conducts a rough analysis of the environmental gains from using the ASP model. The key environmental benefits derive from using a "lighter" hardware such as thin clients and the possibilities to extend its lifetime. The conclusions show that there are several groups of barriers: technical, cultural, knowledge, economic and legal barriers that can be addressed by different actors. Companies can overcome some of those barriers, but the issues of property and privacy right protection; anti-trust legislation, standardisation and infrastructure development have to be addressed by government. ASP stakeholders can find it interesting to identify and exploit the potential environmental benefits of ICT outsourcing.