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Application Service Provider

Glossary

What is Application Service Provider

Application service provides (ASP) is the name for a business which does application service providing, which means it designs and sells specific software tools for different purposes. Applications service provide can sell all types of software, as well as application software providers differ by the industry they develop tools for.

Application services providers are all software development companies which provide specific software tools as the main product of their business. In this case, every software developer is the application service provider, but only if it is the owner of the software, it provides the software thorugh the web and designs it to serve some specific purposes – deal with exact tasks – and offers flexible payment policies to its customers. The synonym for application software provider is vendor, but all the developers which provide software for the functioning of the computer system itself (system protocols, drivers, etc.) aren’t application service providers.

Synonyms for definition Application Service Provider

  • Cloud Service Provider
  • Software-as-a-Service (SaaS) Provider
  • Hosted Service Provider
  • On-Demand Software Provider
  • Web-Based Software Provider
  • Online Application Provider
  • Internet-Based Service Provider
  • Application Hosting Provider
  • Remote Application Provider
  • Managed Service Provider (MSP)

The core idea behind an ASP is that instead of organizations purchasing, installing, and maintaining software on their own systems, they can access and use the applications remotely, typically through a web browser or thin client, with the software and data being hosted and managed by the ASP.

FAQ about Application Service Provider

What are the benefits of using an ASP?

There are numerous benefits to using an ASP, including:

  • Lower upfront costs: With an ASP, you pay a subscription fee instead of investing in expensive hardware and software licenses.
  • Reduced IT overhead: The ASP handles software updates, maintenance, and technical support, freeing up your IT resources.
  • Scalability: ASPs make it easy to scale up or down based on your changing business needs.
  • Accessibility: With web-based applications, you can access your software from anywhere with an internet connection.

How secure are ASP services?

Reputable ASPs invest heavily in security measures to protect your data and applications. They typically employ robust security protocols, such as data encryption, firewalls, and regular security audits. Additionally, many ASPs offer Service Level Agreements (SLAs) that guarantee specific levels of security, availability, and performance.

What types of applications do ASPs typically offer?

ASPs offer a wide range of applications, including:

  • Customer Relationship Management (CRM) software
  • Enterprise Resource Planning (ERP) systems
  • Accounting and finance software
  • Human Resources (HR) management tools
  • Collaboration and project management platforms
  • Industry-specific applications (e.g., healthcare, manufacturing, retail)

How do I choose the right ASP for my business?

When selecting an ASP, consider factors like the provider’s reputation, service level agreements, security measures, customer support, pricing structure, and the specific applications they offer. It’s also important to evaluate their scalability and integration capabilities to ensure the ASP can grow with your business needs.

How do I get started with an ASP?

Getting started with an ASP typically involves the following steps:

  1. Identify your business requirements and the applications you need.
  2. Research and evaluate potential ASPs based on your criteria.
  3. Negotiate and sign a service agreement with your chosen ASP.
  4. Migrate your data and processes to the ASP’s platform (the ASP will often assist with this).
  5. Train your employees on the new software and processes.
  6. Monitor and manage the ASP relationship, providing feedback and adjusting as needed.

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