Application service provider

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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.

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

References

^ "Upstarts: ASPs, ASPs Article". Inc.com. 2000-04-01. Retrieved 2022-06-14. An ASP hosts software applications, which its customers access over the Web instead of running them on their own computers.
^ ^a ^b ^c ^d ^e ^f ^g ^h ⁱ Stair, Ralph M. (2003). Principles of Information Systems, Sixth Edition. Thomson. p. 149. ISBN 0-619-06489-7.

[1] "Upstarts: ASPs, ASPs Article". Inc.com. 2000-04-01. Retrieved 2022-06-14. An ASP hosts software applications, which its customers access over the Web instead of running them on their own computers.

[pis-ch4-p149-2] ^ ^a ^b ^c ^d ^e ^f ^g ^h ⁱ Stair, Ralph M. (2003). Principles of Information Systems, Sixth Edition. Thomson. p. 149. ISBN 0-619-06489-7.

[1]

[2]

The ASP model

See also

References