What is an application service provider? An ASP is a man or a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service. The most limited sense of this business is that of providing access to a particular application program using a standard protocol such as HTTP. The term ASP should not be confused with Microsoft Corporations software application.
This kind of applications are provided to companies according every business needs. It may be an application designed to occasional use or using group connectivity provided by through the Internet to provide a flexible application. In these days, there’s a lot of companies working through the ASP model and that number is increasing.
There are a number of technical and business issues currently addressed by ASP’s to develop and enhance system applications. And a lot of companies creating software dedicated to various business functions as financial management, materials management, human resources and e-commerce transaction services. There’s a great number of solutions provided through this model.
ASP applications are becoming more popular as more businesses look to outsource their information technology so they can focus on their core business. These are good news to a great number of companies. Because this model provide them good, focused, cheap software that can service particular business needs so companies can focus on their core operations. The ASP’s give companies access to more software products, and what’s more important, software focused in their needs. So, costs decrease while efficiencies increase.
Also it removes many of the technical and maintenance issues associated with software by providing real-time upgrades, remote hosting, remote dial in customer support and overall software management. This allows businesses to access applications that can service particular business needs so companies can focus on their core operations.
There’s also another kind of ASP’s, they are called AIP’s or application infraestructure providers. They are hosting providers that offer a full set of infrastructure services for hosting online applications; or more simply, an ASP for ASPs. This is the result of web hosting companies involved in the development of applications.
The need for ASP’s has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium sized businesses. In effect, Application Service Providers provided companies with a means of outsourcing their information technology needs, allowing the companies to focus on their core competencies and allowing the ASP’s to handle key elements like web hosting, payments processing, etc.
Through ASP’s, 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, 24 x 7 technical support, physical and electronic security and in-built support for business continuity and flexible working.