That is a very good question when doing it doesn't make economic sense.
However, there are some reasons that make sense to some companies. For
instance, if a company is very large, it may already have so much information
processing infrastructure in place that they feel economically justified.
Or, the company can have such a need for secrecy that even though the ASP
environment is totally secure, they are uncomfortable, and want everything on
their premises. Still in other companies, if something relates to
computers, the operations are more or less run by the IT personnel, and they
may just want to have all the hardware and software under their control.
If you read the popular literature on the growth of the Application Hosting Industry,
you will see that client companies are rapidly moving to using Hosted Applications because
there are so many advantages in addition to economics. For example, it
makes sense for a decentralized company to use a Hosted Application so that all
their employees can be on the same system. They also know that they
have a lot better uses for their capital than buying or leasing, updating, and
maintaining software.
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