Application Service Providers represent a new global industry devoted to reliable, predictable and efficient delivery of advanced application services to a broad range of businesses and individual consumers.

An Application Service Provider (ASP) offers access to applications, as well as the associated IT infrastructure and support services, to customers on a subscription basis. ASPs host applications at a remote data centre and deliver them to customers over private networks or the Internet.

What Application Services Does an ASP Provide?

ASPs deliver transparent software services - including the deployment, integration, access, training, management and support of applications - with no up-front investments in application licenses, servers, people and resources, and at guaranteed service levels. Whether provisioned by the ASP alone or in conjunction with partners, from a customer perspective, he is purchasing a single service from a single point of contact: the ASP.

Behind the scenes, however, a complex ASP supply chain exists to deliver a variety of competencies in the areas of services, networking and applications, to name just a few. ASP offerings typically encompass the following application services:

· Access
Analogous to "pay-per-view" television, ASPs deliver application access to users on demand for a fee, allowing the customer to use the application without having to license, maintain or support it.

· Infrastructure operations
ASPs operate the data centres where applications are hosted, providing software management, security, and disaster recovery, and business functions such as billing and usage monitoring.

· Network connectivity
These services, often delivered in partnership through local telecommunications firms or Internet Service Providers, may include connections to the Internet, operation of a Virtual Private Network, and reliability, performance and security management.

· Support services
The ASP provides end-user helpdesk support and training services surrounding the application's use.

· Management service
- Applications are hosted and managed at a central site, rather than each customer's site, and delivered to users in remote locations. This includes daily administrative tasks associated with running applications as well as managing upgrades and updates.