An application service provider (ASP) is 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 (SaaS). The most limited sense of this business is that of providing
access to a particular application program (such as medical billing) using a
standard protocol such as HTTP.
The need for ASPs 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 ASPs, 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.
The importance of this marketplace is reflected by its size. As of early
2003, estimates of the United States market range from 1.5 to 4 billion
dollars. Clients for ASP services include businesses, government
organizations, non-profits, and membership organizations.
From:
Wikipedia
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APPLICATION
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