Application service provider

Short description: Business providing software via the web

An application service provider (ASP) is a business providing application software generally through the Web.[1] ASPs that specialize in a particular application (such as a medical billing program) may be referred to as providing software as a service.

## Contents

* 1 The ASP model
* 2 See also
* 3 References
* 4 External links

## The ASP model

The application software resides on the vendor's system and is accessed by users through a communication protocol. Alternatively, the vendor may provide special purpose client software. Client software may interface with these systems through an application programming interface.

ASP characteristics include:

* ASP hosts the application[2]
* ASP owns, operates and maintains the servers that support the application[2]
* ASP delivers the application to customers via the Internet[2] or a thin client
* ASP may bill on a per-use basis (on-demand outsourcing), a monthly/annual fee, or a per-labor hour basis

The advantages to this approach include:

* Application costs are scaled over multiple customers[2]
* ASP may provide more application experience than the customer's staff[2]
* ASP may provide application customization for the customer[2]
* Application's version is likely to be kept up to date
* Experts manage the application for performance[2]
* Experts research the application for new features[2]

The disadvantages include:

* The customer must rely on the ASP for a critical business function, including security and performance[2]
* The customer may have to accept the application as provided
* The customer may have to adapt to possible application changes
* Integration with other applications may be problematic

## See also

* Application server
* Business service provider
* Communication as a service
* Hosted service provider
* Multitenancy
* Outsourcing
* Service level agreement
* Utility computing
* Web application

## References

1. ↑ "Upstarts: ASPs, ASPs Article". Inc.com. 2000-04-01. http://www.inc.com/magazine/20000401/18093.html. "An ASP hosts software applications, which its customers access over the Web instead of running them on their own computers."
2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Stair, Ralph M. (2003). Principles of Information Systems, Sixth Edition. Thomson. p. 149. ISBN 0-619-06489-7.

## External links

* Application Service Providers at Curlie

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