An Application Service Provider (ASP) is a company that delivers software applications and related services to customers over a network, typically the internet. Instead of purchasing and installing software on individual computers, users can access applications remotely through a subscription-based or pay-per-use model.

ASPs handle software hosting, maintenance, updates, and security, reducing the need for businesses to manage IT infrastructure. This model is an early form of cloud computing and has since evolved into modern Software as a Service (SaaS) solutions.

Common Use Cases:

• Business Applications: Provides access to CRM, ERP, and collaboration tools.
• Web-Based Services: Delivers email, data storage, and document editing applications.
• Industry-Specific Solutions: Offers specialized software for healthcare, finance, and education.

Key Characteristics:

• Remote Access: Applications are hosted on external servers and accessed via the internet.
• Subscription-Based Model: Customers pay for usage rather than purchasing software outright.
• Managed Services: The provider handles updates, security, and technical support.
• Scalability: Users can adjust services based on business needs.