What is application service provider?

An application service provider is a business that offers multiple customer access to business applications over the network while charging rental or subscription-based fees for services used.

In general, application service provider provides the service and possesses the characteristics of a typical IT organization.

The basic value functions of application service provider is that they rent out technology rather than sell it, get revenues from the sale, and deliver it online, either over the internet or via other private or dedicated networks.

In this sense application service provider hosts the application for its customers on their behalf. In addition, it manages the applications as well as upgrades them whenever new releases become available from the application vendors.

Technically, an application service provider provides browser-based access to it applications over the internet to the employees of its customers. Whenever an employee needs to use an application, the employee invokes a URL, signs on and us the application.

The application service provider business model is service and subscription based. It provides act as service bureaus by renting software to corporations.

The clients of an application service provider pay a fee, depending on the type of application and number of user, to use the application over a wide area network.

It is also possible for the use to rent applications from different application service providers depending on the application needs and the application service provider fees.

The types of software they furnish range from voice messaging, database and payroll processing to e-commerce and customer relationship management for managing Web and voice-based traffic to call centers.
What is application service provider?