Defining an Internet ASP
The terms "ASP" and "Application Service Provider" are applied specifically to companies that provide services via the Internet. In most cases, the term ASP has come to denote companies that supply software applications and/or software-related services over the Internet.
Here are the most common features of an ASP:
- The ASP owns and operates a software application.
- The ASP owns, operates and maintains the servers that run the application. The ASP also employs the people needed to maintain the application.
- The ASP makes the application available to customers everywhere via the Internet, either in a browser or through some sort of "thin client."
- The ASP bills for the application either on a per-use basis or on a monthly/annual fee basis. In many cases, however, the ASP can provide the service for free.
Return
Advantages of ASPs
The ASP model has evolved because it offers some significant advantages over traditional approaches. Here are some of the most important advantages:
- Especially for small businesses and startups, the biggest advantage is low cost of entry and, in most cases, an extremely short setup time.
- The pay-as-you-go model is often significantly less expensive for all but the most frequent users of the service.
- The ASP model, as with any outsourcing arrangement, eliminates head count. IT headcount tends to be very expensive and very specialized, so this is frequently advantageous.
- The ASP model also eliminates specialized IT infrastructure for the application as well as supporting applications. For example, if the application you want to use requires an Oracle or MS-SQL database, you would have to support both the application and the database.
- The ASP model can shift Internet bandwidth to the ASP, who can often provide it at lower cost.