Application service provider

An application service provider (ASP) is a business providing

• 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

• Application Service Providers at
  Curlie