Glossary
Application Service Provider (ASP)
Tags: Glossary
A company that offers access over the Internet to applications (examples of applications include word processors, database programs, web browsers, development tools, communication programs) and related services that would otherwise have to be located on their own computers. Sometimes referred to as 'apps-on-tap', ASP services are expected to become an important alternative, especially for smaller companies with low budgets for information technology. The purpose is to try to reduce a company's burden by installing, managing, and maintaining software.
What is Application Service Provider (ASP)?
An Application Service Provider (ASP) is a company that provides access to various applications and related services over the Internet. These applications can include word processors, database programs, web browsers, development tools, and communication programs. The main advantage of using an ASP is that it eliminates the need for companies to install and maintain these applications on their own computers.
Traditionally, companies had to purchase and install software on their own computers to perform various tasks. This process required significant upfront costs, as well as ongoing maintenance and updates. Additionally, companies needed to allocate resources for managing and troubleshooting these applications.
ASP services offer a cost-effective alternative, especially for smaller companies with limited budgets for information technology. Instead of purchasing and managing software, these companies can simply access the required applications through the ASP's servers via the Internet. This eliminates the need for expensive software licenses and reduces the burden of software installation, management, and maintenance.
By utilizing ASP services, companies can focus on their core business activities without worrying about the technical aspects of software management. ASPs typically handle tasks such as software updates, security patches, and data backups, ensuring that the applications are always up-to-date and secure.
Another benefit of ASPs is the flexibility they provide. Companies can easily scale their usage of applications based on their needs. For example, during peak periods, additional resources can be allocated to handle increased demand, and during slower periods, resources can be scaled back to optimize costs.
ASP services have become increasingly popular due to advancements in internet connectivity and cloud computing technologies. With reliable and high-speed internet connections becoming more accessible, companies can access applications hosted on remote servers seamlessly. Cloud computing has also made it easier for ASPs to provide scalable and reliable services to their clients.
In conclusion, an Application Service Provider (ASP) offers access to applications and related services over the Internet, eliminating the need for companies to install and manage software on their own computers. This approach reduces costs, simplifies software management, and allows companies to focus on their core business activities. ASP services are particularly beneficial for smaller companies with limited IT budgets, as they provide access to essential applications without the need for significant upfront investments.