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An ASP, short for application service provider, provides applications as a service, software and services having to do with the information technology requirements of companies and individuals. The term has no relation with Microsoft Corporations software application. The most limited sense of this business is that of providing access to a particular application program using a standard protocol.
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, these companies develop software and solutions that you will not find in any other PC-based software and remove many of the technical administrative and maintenance issues associated with software by providing upgrades, remote hosting and support.
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. As well, the growing complexities of software have led to huge costs in distributing the software to end-users. 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.
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