Application Service Providers

An application service provider (ASP) is a vendor that offers individual users or an entire company- with software applications over a network of computers, usually a local area network (LAN) or an LAN with Internet access. The provided software application may be referred to as software as a service, apps on tap, or on-demand software. One of the most fundamental forms of ASP is a vendor that provides access to particular application software using HTTP protocol.

In essence, Application Service Providers are a way for organizations to outsource some or almost all aspects of their information technology needs. They can be commercial ventures that cater to customers, or not-for-profit or government organizations, offering services and support to end users. Extra benefit of Application Service Provider is that software upgrades are often automatic, and the ASP generally agrees to provide technical support and security for its software. With enough fast network connection, an ASP can support business continuity and flexible working hours to everyone.

The advantages to this approach include:

  • Software integration issues are eliminated from the client site.
  • Software costs for the application are spread over a number of clients.
  • Vendors can build more application experience than the in-house staff.
  • Key software systems are kept up to date, available, and managed for performance by experts.
  • Improved reliability, availability, scalability and security of internal IT systems.
  • A provider's service level agreement guarantees a certain level of service.
  • Access to product and technology experts dedicated to available products.
  • Reduction of internal IT costs to a predictable monthly fee.
  • Redeploying IT staff and tools to focus on strategic technology projects that impact the enterprise's bottom line.







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