Application Service Provider

Under the Application Service Provider (ASP) model, applications and software reside on a vendor’s system and is accessed by clients and/or other users via a web browser or client software provided by the vendor. This approach gives clients access to powerful and flexible software without introducing software integration and compatibility issues for the client.

Typical ASP applications include software associated with payroll and other human resource management, enterprise resource planning, sales force automation, centralizing shared resources and other applications designed to enhance workforce productivity. Examples of companies that provide specific, targeted ASP services include Salesforce.com, WebEx and Clickability.

In some cases, multiple clients will use the same applications and software, which defrays the cost of the software across numerous clients, enabling the ASP to offer the application/software at a lower price than it could if the application were sold to each customer individually and hosted on the client’s system. For example, NationalNet Hosting offers hosted database and ecommerce solutions, providing systems that are robust, scaleable and customizable. NationalNet installs, configures, monitors, secures, and performs backup services on these hosted solutions, allowing its clients to focus on growing their business, instead taking time to master new technologies.