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What is the meaning of ASP?

An ASP (Application Service Provider) is an entity or organisation that offers software applications to its customers over the Internet. Basically, the entity rents ASP software for a fee. The customer who rents the software accesses it remotely through a web browser without any computer installation on the local drive.

The advantages of an ASP are mainly based on the security offered and the comprehensive services. The applications the entity sells allow companies to outsource entire administrative areas, thus minimising risks and saving resources. In this context, the software applications can be leased in part or in full.

A further advantage of an ASP is that computing power and system resources are shifted to the provider's server, so that system requirements in the company can be minimised.

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