Application_service_provider

Application service provider

Application service provider

Business providing software via the web

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