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Application service provider

Business providing software via the web

Wikipedia contributorsAdapted for Fathomly · View authors
1 min read
Source updated February 13, 2026

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.

01The 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
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Sources and credits

This article is adapted from the Wikipedia article “Application service provider”, written by its contributors and licensed under CC BY-SA 4.0. Fathomly has changed the layout, removed citation markers, navigation and maintenance notices, and adjusted punctuation. This adapted version is shared under the same license. For references, see the original article.

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