Application service provider (ASP)

Definition

An application service provider (ASP) is a business that delivers software applications or services over the internet or a network to its customers.

What is an application service provider?

Instead of users installing and maintaining software on their individual devices or servers, ASPs host and manage these applications centrally, providing access to users through web browsers or dedicated interfaces.

Users can access the hosted applications over the internet, usually through web browsers or dedicated client software. This allows for remote access and collaboration, making it convenient for users regardless of their location.

ASPs often operate on a subscription or pay-as-you-go model, where users pay for the services they use rather than making upfront software purchases. This can be cost-effective for businesses as it eliminates the need for significant initial investments.

ASPs offer scalable solutions, allowing users to easily scale up or down based on their needs. This is particularly beneficial for businesses experiencing growth or changes in demand.

Example of an application service provider

Common examples of services offered by application service providers include customer relationship management (CRM) software, enterprise resource planning (ERP) systems, email services, and collaboration tools.