ASP Defined

Application Service Provision (ASP) can be defined as the convergence of communications companies and software vendors to offer applications to companies on a rental basis. The proposition is based on payment for a "service" rather than for software products and professional services, and on a "pay-as you-go" model rather than a traditional software license model.

ASP makes high-end business software available to the mass-market of SMEs/SMBs allowing them to access world-class applications but without paying for the expensive systems integration that these products currently require. By hosting the applications centrally on the network, and providing streamlined versions that require minimal customisation, service providers can realise economies of scale and serve many users.

ASP is a delivery mechanism and not a product. Customers access ASP applications either through the public Internet or through private access (e.g. frame relay, ATM, VPN) depending on security requirements. The decision as to which method to use depends on the customer’s budget.

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