Application Service Provider (ASP) is an external unit that controls and disperses software applications using the internet over a network. ASP helps in reducing the costs and various complexities associated with software distribution and maintenance.

There are different kinds of Application Service Provider (ASPs). Some of them being:

Enterprise ASPs: these are designed for complex businesses to suit their intense requirements.

Regional ASPs: these are suitable for smaller businesses that cover small geographic locations.

Specialist ASPs: they are designed to cater to specific requirements such as accounting, human resources, and payroll and so on.

Vertical market ASPs: they are industry specific designed to cover the overall needs of the same. It identifies the trending requirements of the industry and answers the same.

Volume Business ASPs: provides a set of applications for which the customers pay in advance and also are well aware of the services that fall in the brackets of the packages designed.

How is ASP different from Saas

  • Saas provides the same feature to all users whereas ASP provides customized solution for single user
  • In Saas, the solution is managed maintained, and supported by the provider. That means the provider has all the control. In ASP user has the control on the solution and he can demand the service that he wants
  • Service level agreement is common to all users in Saas. But in ASP service level agreement is distinctive to user
  • The solution is always based on the internet in Saas. In ASP solution is need not be based on internet
  • Users can buy the software from a third-party retailer in ASP, but in SaaS, users cannot buy the software from a third-party retailer.

Get more definitions about application service provider (ASP) and other ERP related terms here.


Subscribe to our Email Newsletter