Application Service Providers (ASPs) Are Quickly
The term “application service provider” (ASP) has been applied to computer service companies that provide a ‘software as a service’ approach. One of the first forms of this method was an application service provider which provided a multi-tenant environment for business applications.
The ASP provides a wide range of technology, systems and software products over the Internet to individual consumers and businesses. Specifically, ASPs deliver online access to enterprise software like payroll processing, human resources information systems (HRIS), customer relations management (CRM) or any other programs that are centralized via an intranet or extranet; however there is not necessarily any standardization between providers.
These hosted services may be offered either free of charge (freemium model on a subscription basis (e.g. Microsoft Azure)) or for a monthly/yearly fee, with the option to cancel service without penalty whenever desired.
The ASP has grown rapidly in recent years, offering various hosted services which are becoming extremely popular with small and medium-sized enterprises (SME).
For example, an application service provider can provide businesses with greatly reduced cost savings by minimizing hardware requirements and utilizing already existing servers. An ASP also offers immediate access to newly upgraded software products and services which would otherwise require significant time to implement at each place of business. For companies that lack the resources or willingness to host their own web server or develop their own website, ASPs are often used as they present numerous benefits over local hosting.
Application Service Providers and Hosting
Application Service Providers (ASPs) have become a popular option for companies looking to outsource their hosting services. The term ASP refers to the fact that the company provides software applications over the Internet, or through any network-based environment, which are hosted by an ASP.
These companies provide businesses with access to enterprise software like payroll processing, human resources information systems, customer relations management etc. An ASP can be either an individual firm or a consortium of firms which provide these web-based services on a subscription basis.
As more and more places of business are migrating towards ‘cloud computing,’ utility pricing based models are becoming increasingly popular.
This new approach allows service providers to offer individuals and businesses unlimited storage capacity at very competitive prices. The best example of this is the storage services offered by providers like Microsoft Azure, Amazon AWS, Google Cloud Platform and Rackspace Cloud. These providers have all built their businesses by allowing customers to use only the resources they need, when they need them.
The popularity of ASPs has exploded in recent years as small and medium-sized businesses (SMEs) are beginning to see the tremendous cost savings that can be achieved. For companies that lack the resources or willingness to host their own web server or develop their own website, an ASP can often provide a more attractive option. In addition to reduced hardware and software costs, an ASP can offer:
1) Quick Implementation — When you sign up with an ASP, you can typically expect to have access to the newest software products and services almost immediately. This is because the ASP will have already implemented these products and services at their data center.
2) Minimal Maintenance — Since the ASP is responsible for maintaining all of the hardware and software required to run your applications, you can avoid any costly and time-consuming maintenance tasks.
3) Scalability — An ASP can easily scale its services up or down in order to meet your changing needs. If your business experiences a sudden surge in traffic, for example, the ASP can quickly increase the number of servers that are available to handle the load.
4) Diversification — By utilizing an ASP, businesses can minimize their risk by spreading their IT resources across multiple providers. This can help to improve the overall reliability of your IT infrastructure.
5) Cost Savings — One of the primary reasons businesses turn to ASPs is to save money on their hosting and software costs. Many providers offer a y/yearly fee, with the option to cancel service without penalty whenever desired.
The ASP has become a popular choice for companies looking to outsource their hosting needs and offers numerous benefits over local hosting. By utilizing an ASP, businesses can achieve significant cost savings while enjoying quick implementation of new products and services. As more and more companies migrate towards ‘cloud computing,’ the popularity of application service providers is only expected to increase.
The benefits of using an ASP are clear and, as more and more companies migrate towards ‘cloud computing,’ the popularity of application service providers is only expected to increase. If you are looking for a way to reduce your hardware and software costs, improve your IT reliability or simply take advantage of the newest technology, then an ASP may be right for you.
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