Definition

An Application Service Provider (ASP) is a business providing computer-based services to customers over the internet; such as access to a particular software application (such as customer relationship management)). The need for ASPs has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium sized businesses. As well, the growing complexities of software have led to huge costs in distributing the software to end-users. Through ASPs, the complexities and costs of such software can be cut down. In addition, the issues of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date services, technical support, physical and electronic security and in-built support for business continuity and flexible working. The importance of this marketplace is reflected by the skills of the APS. Clients for ASP services include businesses, government organizations, non-profits, and membership organizations.

 

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