{{Short description|Business providing software via the web}}
An '''application service provider''' ('''ASP''') is a business providing application software generally through the Web.<ref>{{cite web | url=http://www.inc.com/magazine/20000401/18093.html | title=Upstarts: ASPs, ASPs Article | publisher=Inc.com | date=2000-04-01 | access-date=2022-06-14 | quote=An ASP hosts software applications, which its customers access over the Web instead of running them on their own computers.}}</ref> 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<ref name="pis-ch4-p149">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 149 | isbn = 0-619-06489-7 }}</ref> * ASP owns, operates and maintains the servers that support the application<ref name="pis-ch4-p149"/> * ASP delivers the application to customers via the Internet<ref name="pis-ch4-p149"/> 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<ref name="pis-ch4-p149"/> * ASP may provide more application experience than the customer's staff<ref name="pis-ch4-p149"/> * ASP may provide application customization for the customer<ref name="pis-ch4-p149"/> * Application's version is likely to be kept up to date * Experts manage the application for performance<ref name="pis-ch4-p149"/> * Experts research the application for new features<ref name="pis-ch4-p149"/>
The disadvantages include: * The customer must rely on the ASP for a critical business function, including security and performance<ref name="pis-ch4-p149"/> * 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== * Application server * Business service provider * Communication as a service * Hosted service provider * Multitenancy * Outsourcing * Service level agreement * Utility computing * Web application
==References== {{Reflist}}
Category:IT service management Category:Customer relationship management