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Emergence of ASP

ASPs are third party services that maintain and distribute software - based on selective outsourcing solutions to customers. So, ASP could be seen as the ideal solution to sell technology and ERP outsourcing benefits to SMBs. Some of the biggest ASP players are actually ERP solution vendors who saw ASP as a means of penetrating the SMB sector. Being a form of application outsourcing, the model consists, in its simplest form, deploying, and managing and remotely hosting software applications through centrally located servers.

Customers, in their turn, use the hosted applications in a rental arrangement. By taking away the day-to-day hardware and systems management duties, the ASP model promises to give organizations the opportunity to focus on their core functions.

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* Contributed by -
Varun Gupta,
B.E. (Electronics), Mumbai University,
MBA, ICFAI University, Hyderabad,
Currently working as Business Analyst with NSE.IT Ltd., Mumbai.