The ASP modelEdit
The application software resides on the vendor's system and is accessed by users through a communication protocol. Alternatively, the vendor may provide special purpose client software. Client software may interface with these systems through an application programming interface.
ASP characteristics include:
- ASP fully owns and operates the software application(s)
- ASP owns, operates and maintains the servers that support the software
- ASP makes information available to customers via the Internet or a thin client
- ASP may bill on a per-use basis, a monthly/annual fee, or a per-labor hour basis
The advantages to this approach include:
- Software costs for the application are spread over multiple clients
- Vendors provide more application experience than the in-house staff
- Key software systems are kept up to date and managed for performance by experts
- Access to product and technology experts dedicated to available products
- Reduction of internal IT costs to a predictable fee
Some disadvantages include:
- The client must generally accept the application as provided
- The client must rely on the provider for a critical business function
- The client must adapt to possible vendor changes
- Integration with other applications may be problematic
- "Upstarts: ASPs, ASPs Article". Inc.com. 2000-04-01. Retrieved 2022-06-14.
An ASP hosts software applications, which its customers access over the Web instead of running them on their own computers.