What is Application Service Provider (ASP)?

Other common terms are SaaS (software as a service), on-demand or Web-based services. A business that provides computer-based services to customers over a network, as opposed to installing the software on a company server (hosted). This is a cost-effective solution for small and medium-sized businesses, who may find it hard to keep up with the increasing costs of specialized software, distribution and upgrades.

Companies use ASPs to outsource either a portion or the entirety of their information technology requirements. Examples of uses for ASPs include offering local area network capabilities offered off premises, remote access serving for enterprise using and affordable specialized applications.

Through ASP services, companies are able to afford more time and resources into enhancing more significant processes. These more administrative tasks can be automated, technical support from software providers can often help small businesses in creating and building asp models to suit their specific requirements.