Application Service Providers (ASP) and Hosting

Application service providers, often referred to as ASP's, have quickly popped up on the web hosting scene to provide businesses with ways to offer new and innovative services. The term ASP is NOT the same thing as Microsoft Corporation's software application.

The number of applications provided through the ASP model is growing fairly rapidly. Accordingly, there is a growing business of companies developing software for the ASP marketplace.

What kind of applications are being developed, you ask?

Good question! Because remotely-hosted applications can provide a cost-effective temporary license for businesses to access unique software, many of the applications being created are designed with that in mind—it's software that is used infrequently or more of a convenience than a requirement.

Software geared towards group use and group connectivity provided by through the Internet are also popular.

ASP developers have created software programs to handle various business functions as materials management, human resources, financial management, and e-commerce transaction services.

The variety of solutions provided by ASP's is vast. Many ASP's are doing great business in meeting operational needs of companies across different industries and business functions. There are a number of technical and business issues currently addressed by ASP's to develop and enhance system applications at a much lower cost than custom in-house solutions or multiple commercial licenses provide.

The major advantage for businesses in seeking ASP services is that they provide an opportunity to reduce costs and increase efficiencies. Companies can have access to a wider-range of software products while often paying less than an outright purchase. This allows businesses to access applications that can service particular business needs so companies can focus on their core operations.

Furthermore, ASP's are developing new software that can provide business solutions to operating issues not previously addressed through PC-based software. ASP's also remove many of the technical administrative and maintenance issues associated with software by providing real-time upgrades, remote hosting, remote dial in customer support and overall software management.

Web hosting companies are involved in the development of applications, however, many of the hosting companies serve to provide network management and serve the application remotely to users. In providing ASP-related services, these companies are essentially AIP's (application infrastructure providers.)

For mainframe web hosting applications, ASP service providers are pioneering a new way to host and maintain business applications.