Application Service Providers (ASPs)
Application Service Providers (ASPs) are third-party entities that deliver software applications and related services over a network, usually the Internet. This model allows businesses and individuals to access software remotely via a web browser rather than installing these programs locally on their computers. ASPs often use a subscription-based billing model, charging users on a monthly, quarterly, or annual basis.
Detailed Definition
ASPs offer a variety of services, including but not limited to:
- Email services: Instead of using a locally installed email client, users can access their email via a web browser.
- Travel reservation systems: Companies can manage travel tickets and bookings online without the need for in-house software.
- Customer Relationship Management (CRM): Organizations can track customer interactions and manage accounts through an online platform.
- Enterprise Resource Planning (ERP): These systems integrate various functions like finance, HR, and inventory management into a single, cloud-based system.
Examples of ASPs:
- Salesforce: A leading ASP that provides CRM software helping businesses manage sales, customer service, and marketing.
- Google Workspace: Offers cloud-based productivity tools such as Gmail, Google Drive, and Google Docs.
- Concur: Specializes in travel and expense management services for businesses.
Frequently Asked Questions (FAQs)
Q1: How does ASP differ from traditional software?
- A: Traditional software requires installation on local machines and often involves a one-time purchase or license fee. ASPs, on the other hand, provide software via the Internet and typically use a subscription billing model.
Q2: What are the benefits of using an ASP?
- A: Benefits include reduced IT costs, easy software updates and maintenance, remote accessibility, and scalable services that can be adjusted based on needs.
Q3: Are there any security risks associated with ASPs?
- A: Yes, since ASPs operate over the Internet, they can be vulnerable to cyber-attacks, data breaches, and service interruptions. However, many ASPs use advanced security measures to protect their clients.
Q4: Can ASP services be customized?
- A: Many ASPs offer customizable services to fit the specific needs of businesses, such as tailored configurations and bespoke integrations.
Related Terms and Definitions
- SaaS (Software as a Service): A software distribution model where applications are hosted by a service provider and made available to customers over the Internet.
- Cloud Computing: The delivery of various services over the Internet, including data storage, servers, databases, networking, and software.
- Hosted Service: Any service that is hosted by a company or service provider in a remote location rather than on-premise.
- Subscription Model: A billing method where customers pay regular recurring amounts for access to a product or service.
Online References
- Gartner’s ASP Definition
- TechTarget on Application Service Provider (ASP)
- Mitchell’s Web Site for ASPs
Suggested Books for Further Studies
- “Mastering SaaS: An In-Depth Guide to Software as a Service” by Ted Ladd
- “Cloud Computing: Concepts, Technology & Architecture” by Thomas Erl
- “The Everything Store: Jeff Bezos and the Age of Amazon” by Brad Stone
Fundamentals of Application Service Providers: SaaS Basics Quiz
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