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Application Service Provider (ASP) is a business that provides computer-based services to customers via the Internet; such as accessing a specific software application (such as customer relationship management) using a standard protocol (such as HTTP).

The demand for ASP has evolved from the growing cost of specialized software that far exceeds the price of small and medium businesses. At the same time, the growing complexity of software has led to huge costs in delivering software to end users. Through ASP, the complexity and cost of such software can be reduced. In addition, upgrade issues have been removed from the business by placing ASP information to maintain up-to-date services, 24x7 technical support, physical and electronic security, and support. Built for business continuity and flexible work.

The importance of this market is reflected by its size. By the beginning of 2003, US market estimates ranged from $ 1.5 billion to $ 4 billion. [citation needed] Customers using ASP services include businesses, government organizations, non-profit organizations, and member organizations.

Application service providers (often referred to as ASP) have emerged into Web hosting in an effort to provide businesses with new and innovative services. The term ASP should not be confused with the Microsoft Corporation software application.

The number of applications provided through the ASP model is increasing. Accordingly, there is a growing business of software development companies for the ASP market. What types of applications are being developed? Since remotely hosted applications can provide cost-effective access for businesses to single software, many applications are designed for use on a regular basis. Others are geared toward using group connections provided over the Internet to provide a flexible application.

ASP has created software programs to handle various business functions such as document management, human resources, financial management, and e-commerce transaction services.

The variety of solutions provided by ASP is enormous. Many ASPs are doing great business in meeting the operational needs of companies across different industries and business functions. At present, there are a number of technical and business issues that are addressed by ASP to develop and enhance system applications.

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