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Definition: ASP (Application Service Provider)
ASP or Application service provider is a third party firm which provides the use of a software based services through the internet from a central data centre. The software being provided in this form is typically referred as on-demand software or software as a service (SaaS).
The rationale behind such a system is that the very high licensing costs for specialized software outweigh their utility hence; such a system makes it economically viable for small and medium scale businesses to have access to such software.
ASP can be broadly divided into five categories:
Enterprise ASP: Deliver business applications
Local/Regional ASP: Supply small applications for businesses in a local area
Specialist ASP: Provide specialist applications for a specific purpose
Vertical Market ASP: Provide industry specific applications
Volume Business ASP: Supply general pre-packaged applications in large volumes
Browse definitions and meaning of more concepts and terms similar to ASP (Application Service Provider). The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.