Posted in Operations and Supply Chain Terms, Total Reads: 3228
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