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Application Solution Provider (ASP)

An Application Service Provider (ASP) owns a software application, maintains all the equipment that is required to run the application, and provides access to users. The ASP makes the application available to customers via the Internet in a browser environment.

The ASP bills the client for the application either on a per-use basis or on a monthly/annual fee basis.   Occasionally, the ASP can provide the service for free or pay the customer by allowing advertisements to be viewed.

The major advantage of a web-based application is low cost of entry and a very short setup time. The ASP model, as with any outsourcing arrangement, greatly reduces personnel cost.  IT personnel is generally expensive and specialized; so reducing this cost is a major advantage.

The ASP model also eliminates specialized IT infrastructure for the application as well as supporting applications.  This infrastructure includes servers, racks, backup equipment, system administrators, off-the-shelf software, and other components needed to support a critical application.  In addition, the ASP model also shifts the Internet bandwidth to the ASP.

PCI has successfully deployed web-based applications.  The applications include,

The industry trend is clear.  Applications are being developed using the ASP model and client's are starting to understand the substantial benefits of this model.