Definition[]
An application service provider (often abbreviated as an ASP) is
| “ | a third-party that manages and distributes software-based services and solutions to customers across a wide area network (e.g., the Internet) from a central data center.[1] | ” |
Overview[]
ASPs allow companies to outsource some or all of their information technology needs.
ASPs are broken down into five subcategories:
- Enterprise ASPs — deliver high-end business applications.
- Local/Regional ASPs — supply a wide variety of application services for smaller businesses in a local area.
- Specialist ASPs — provide applications for a specific need, such as website services or human resources.
- Vertical Market ASPs — provide support to a specific industry such as health care.
- Volume Business ASPs — supply general small/medium-sized businesses with pre-packaged application services in volume.
During the last decade, the term "Application Service Provider" has evolved into Software as a Service (SaaS).