title: Application service provider
text: # Application service provider
  
  An application service provider (ASP) is a business providing application software generally through the Web. ASPs that specialize in a particular application (such as a medical billing program) may be referred to as providing software as a service.
  
  ## The ASP model
  
  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 hosts the application
  * ASP owns, operates and maintains the servers that support the application
  * ASP delivers the application to customers via the Internet or a thin client
  * ASP may bill on a per-use basis (on-demand outsourcing), a monthly/annual fee, or a per-labor hour basis
  
  The advantages to this approach include:
  
  * Application costs are scaled over multiple customers
  * ASP may provide more application experience than the customer's staff
  * ASP may provide application customization for the customer
  * Application's version is likely to be kept up to date
  * Experts manage the application for performance
  * Experts research the application for new features
  
  The disadvantages include:
  
  * The customer must rely on the ASP for a critical business function, including security and performance
  * The customer may have to accept the application as provided
  * The customer may have to adapt to possible application changes
  * Integration with other applications may be problematic
  