Application service provider
An application service provider (ASP) enables businesses to outsource all or part of their information technology (IT) requirements. Any company that hosts computers and provides IT services is an ASP.
ASP Business Models
There are three ASP business models. Some ASPs focus on one model, while others offer different models to customers.
The dedicated model is similar to traditional outsourcing, in which an ASP provides dedicated hardware to run an application, typically an enterprise resource planning (ERP) application. The ASP offers a guaranteed level of service and availability. The ASP manages both application content and hardware/software infrastructure.
Colocation services model
The colocation services model is a real estate play. Hands-on customers generally want colocation hosting. Customers purchase data center space, Internet connectivity, and server monitoring, but they own and operate the equipment inside the center. This model often makes sense for large corporations with some information technology (IT) expertise, as well as dot-com companies whose entire business is on the Internet.
Generally any service that a company’s information technology (IT) department supports can be outsourced to an ASP. Some of those services are listed below.