Application Service Providers

Definition

Application Service Providers (ASPs) are third-party companies that provide software applications and related services to customers over the internet. They host and manage the infrastructure, software, and data required to deliver these applications as a service, allowing customers to access them remotely without the need to install or maintain the software on their own systems.

5 Must Know Facts For Your Next Test

1. ASPs typically offer a subscription-based model, where customers pay a recurring fee to access the applications and services.
2. ASPs are responsible for maintaining and updating the software, as well as ensuring the security and reliability of the hosted applications.
3. The use of ASPs can help organizations reduce the costs and complexity associated with managing and maintaining their own IT infrastructure and software.
4. ASPs often provide a range of applications and services, including enterprise resource planning (ERP), customer relationship management (CRM), and human resources management.
5. The adoption of ASPs has been driven by the increasing demand for flexible, scalable, and cost-effective IT solutions, as well as the growing trend towards cloud computing.

Review Questions

• Explain how Application Service Providers (ASPs) differ from traditional software deployment models.
  • Traditional software deployment models require organizations to install and maintain software on their own local infrastructure, which can be costly and resource-intensive. In contrast, ASPs host and manage the software and related services, allowing customers to access them remotely over the internet. This outsourcing of IT infrastructure and software management can help organizations reduce costs, increase flexibility, and focus on their core business activities.
• Describe the key benefits that organizations can realize by utilizing Application Service Providers.
  • By using ASPs, organizations can benefit from reduced upfront capital expenditures, as they only pay a recurring subscription fee for the services they need. ASPs also provide access to specialized expertise and the latest software updates, eliminating the need for in-house IT staff to manage and maintain the applications. Additionally, ASPs can offer greater scalability and flexibility, allowing organizations to easily adjust their software and service needs as their business requirements change.
• Analyze how the rise of cloud computing has influenced the growth and adoption of Application Service Providers.
  • The growth of cloud computing has been a significant driver for the increased adoption of ASPs. Cloud computing enables the delivery of computing resources, including software applications, over the internet, allowing users to access these services on-demand without the need for local infrastructure. This aligns well with the ASP model, where third-party providers host and manage the applications and related services. The scalability, flexibility, and cost-effectiveness of cloud computing have made it an attractive option for organizations, further fueling the demand for ASPs and their ability to provide access to a wide range of software and services through the cloud.

Related terms

Software as a Service (SaaS): A software distribution model where a third-party provider hosts applications and makes them available to customers over the internet, often through a web browser.

Cloud Computing:

The delivery of computing services, including software, over the internet, allowing users to access and use these resources on-demand without the need for local infrastructure.

Outsourcing:

The practice of contracting a business function or process to a third-party service provider, often to reduce costs or access specialized expertise.