ASP systems provide computer-based services to customers over a network. The ASP vendor hosts the software, allowing users to access it without buying it. ASPs are popular for small businesses and offer various categories of solutions. The main benefit is cost savings, but there are also some disadvantages.
An ASP system, or application service provider system, is software that provides computer-based services to various customers over a network. Basically, the ASP vendor hosts the software and allows users to access the software. This approach allows users to use software, which can be quite expensive, without actually having to buy it. Users generally use the software through a standard protocol (such as HTTP) or through separate software provided by the ASP.
ASP systems have become very popular, especially for small businesses where expensive specialized software would be prohibitively expensive. ASP system customers vary widely and include individuals, private companies, and public organizations. Medical billing services, payment processing services like PayPal, and timesheet services like SlimTimer are all examples of ASP systems.
There are various categories of ASP systems depending on how many solutions are provided by the ASP. Some ASPs focus on just one application like credit card payments. Other ASPs provide a suite of applications to meet different customer needs. For example, some ASPs provide all the special software needed to run a private practice (e.g. patient billing, employee payroll, patient scheduling software).
The ASP typically owns, operates, and is responsible for maintaining the software it makes available to its customers. And, more often than not, ASPs are accessed through the Internet rather than through your own special software.
There are many benefits to taking the ASP system approach. The main one is the cost savings which allows you to spread that cost among many customers. Also, by using external software, no in-house IT skills are required.
As with many things, while there are many advantages to the ASP system, there are some disadvantages as well. One downside is that the software generally comes as-is. Custom solutions are generally only made available to the largest of customers. Additionally, changes to the ASP system may result in changes in the type of service available to customers.
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