Small Business Glossary and Definitions

An Application Service Provider (ASP) is a company that provides computer-based services remotely over a digital network, such as a certain software program, utilizing a standard protocol like Hypertext Transfer Protocol (HTTP). ASPs provide an affordable option for small and medium-sized businesses that can’t afford to buy specialized software or the people to maintain it. The ASP also is responsible for upgrades and technical support as well as electronic and physical security. ASP clients include membership organizations, non-profits and governments in addition to businesses.

The five types are a specialist or functional ASP that provides one application; a vertical market ASP that provides software for a specific type of business; an enterprise ASP that provides broad solutions; a local ASP delivers services to small businesses in a defined area; and a volume ASP that provides a low-cost, packaged solution through their website.