Application service provider

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

See also

References
  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.
  2. Stair, Ralph M. (2003). Principles of Information Systems, Sixth Edition. Thomson. p. 149. ISBN 0-619-06489-7.
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