ASP (Application Service Provision, Application Service Provider) is a model for delivering application software in which applications are hosted and maintained by an external provider, and users access them over a network, typically via the internet. Under the ASP model, customers do not need to install or maintain software on their own infrastructure – all key functions related to operation, updates, and availability are handled by the service provider.
Historically, the ASP model became one of the first steps toward the development of cloud computing. Unlike modern SaaS platforms, ASP solutions were often delivered as dedicated application instances for each customer and featured a lower level of standardization.
How the ASP model works
In the Application Service Provision model, the provider deploys application software in its own data center or on leased infrastructure. The customer connects to the application remotely – via a web browser, terminal access, or a specialized client. Management of servers, operating systems, backup, and updates is fully handled by the provider, while the customer uses the application as a ready-made tool for solving business tasks.
ASP was most commonly used for corporate systems such as accounting and financial applications, CRM, ERP, document management systems, and industry-specific software solutions. This approach allowed companies to implement complex systems more quickly without investing in their own servers and administrative staff.
Differences between ASP and SaaS and cloud services
Although ASP is often considered a predecessor of SaaS, there are fundamental differences between these models. ASP focuses on delivering a specific application to a specific customer, often with individual configurations and a dedicated execution environment. SaaS, by contrast, is based on a multi-tenant architecture, a high degree of standardization, and scalability through a shared platform.
ASP also differs from IaaS and PaaS. In the ASP model, the user does not manage the infrastructure or the platform – they receive application software only, but without the flexibility typical of modern cloud services.
Use cases
The ASP model is still used in niche scenarios where remote access to heavyweight or legacy applications is required and where adaptation to a SaaS architecture is difficult. Examples include access to specialized software for accounting, engineering calculations, or industry-specific systems developed to meet particular standards and regulations. ASP is also found in the telecom environment and among service providers that host customer application systems in their own data centers with managed support.
Advantages of the ASP model
Key advantages of Application Service Provision include:
- reduced capital expenditures on server hardware and licenses
- fast deployment and implementation of application systems
- no need for deep technical expertise on the customer side
- centralized updates and application maintenance
At the same time, it is important to consider that ASP flexibility and scalability are usually lower than those of modern cloud models, and integration with other systems may require additional customization.