Application Service Provider (ASP)
What is a Application Service Provider?
A Application Service Provider is an IT service provider that rents application software to companies. For example, ERP or CRM solutions can be rented from these service providers for a certain period of time based on various payment models. The software is run on the service provider’s servers. Access is via the Internet.
What are the advantages and disadvantages of ASP?
The advantage of companies renting software solutions from a ASP instead of buying them is that the investment in the IT infrastructure in the company and in the software itself is significantly reduced. The provider takes over the administration and maintenance of the hardware and software. The ASP carries out all the necessary updates, so that the applications are always up to date, both in terms of security technology and in the application. In addition, the software can be accessed from any location with Internet access.
The disadvantage is that a stable and fast Internet connection must be available to use the software. If the Internet cannot be accessed, the software cannot be used.
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