ASPs, or Application Service Providers, rent finished software applications hosted at a centrally managed data center or network of data centers. Typically, ASPs offer their services for a monthly fee, which include all of the activities and expertise needed to support a managed software application.

The shift in software distribution from licensing to renting software has emerged because networks and the web make it easier to deliver application functionality on a one-to-many basis. Renting applications in the Application Service Provider distribution model is growing in popularity as it helps businesses easily adopt new applications while avoiding the usual budget and implementation resource bottlenecks. Easily accessing the latest, innovative applications in a budget-friendly rental model to solve specific business problems is a set of services that Application Service Providers provide to customers.

End users and businesses increasingly realize the value of outsourcing software implementation and maintenance. That’s the mass appeal of the Application Service Provider (ASP) market. Without the burden of application management, end users are now free to explore new software options, and application developers enjoy a broader audience.

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