Application Service Provider

Abbreviated as ASP, a third-party entity that manages and distributes software-based services and solutions to customers across a wide area network from a central data center.

In essence, ASPs are a way for companies to outsource some or almost all aspects of their information technology needs. They may be commercial ventures that cater to customers, or not-for-profit or government organizations, providing service and support to end users.

According to ASPnews.com, ASPs are broken down into five subcategories:

  • Enterprise ASPs -- deliver high-end business applications.
  • Local/Regional ASPs -- supply wide variety of application services for smaller businesses in a local area.
  • Specialist ASPs -- provide applications for a specific need, such as Web site services or human resources.
  • Vertical Market ASPs -- provide support to a specific industry, such as healthcare.
  • Volume Business ASPs -- supply general small/medium-sized businesses with prepackaged application services in volume.



Top Terms
  • 1

    Consumerization of IT

    Consumerization of IT is a phrase used to describe the cycle of information technology (IT) emerging in the consumer market then spreading to...

    Read more »

  • 2

    ERP - Enterprise Resource Planning

    Short for enterprise resource planning, ERP is business management software that allows an organization to use a system of integrated applications...

    Read more »

  • Click Here!

Did You Know? Archive »

  • Quick Reference Archive »