Application Service Providers (ASPs)
Application service providers (ASPs) are firms that provide remote services to customers. For example, an ASP accounting firm will
have on its own server the most current accounting software package that reflects the latest changes in the tax laws. A customer then logs into the accounting firm’s website and uses that accounting package to prepare its financial statements. With an accounting ASP, customers no longer need to buy a new software package every time the tax law changes. A major challenge for ASPs is to convince customers that they are not fly-by-night operations and will be in business for the long term. Along with demonstrating financial strength to survive in the long term, ASPs also must convince customers that they provide highly reliable services and that they are very trustworthy with sensitive customer data that are given to them. Finally, customers must have confidence in the reliability of the network over which they will connect to their ASPs.