What Is Application Service Provider

What Is Application Service Provider

An Application Service Provider (ASP) is a business or company providing computer-based services (for example support system or customer relationship management such as Zendesk) over a network with access to the software application using the internet.

The need for ASPs has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium-sized businesses. As well, the growing complexities of software have led to huge costs in distributing the software to end-users. Through ASPs, the complexities and costs of such software can be cut down. In addition, the issues of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date services, 24 x 7 technical support, physical and electronic security and in-built support for business continuity and flexible working.

Application Service Provider Definition
An Application Service Provider (ASP) provides applications and related services over the Internet. Enterprises rent ASP software for a fee. The software is accessed remotely through a web browser and not installed on a company’s local drives. A multi-tenant version of this model is commonly known as Software-as-a-Service (SaaS).