What is the Definition of an ASP?

If you are like many small business owners, you may be asking yourself, “What is an ASP?” You may have dismissed it as just another buzzword generated by the software industry. Not only is it not a buzzword, the outsourcing of IT services is a technology model that is here to stay.

An ASP, or Application Service Provider, is, generally speaking, a company that hosts (or physically maintains) hardware and software applications at its facilities and rents the usage of these products to external companies. This is commonly referred to as IT outsourcing or Software as a Service (SAS or SaaS). This outsourcing can be done locally, nationality, or internationally. Typically this type of process includes the hosting of solutions such as a web site or business software packages such as ERP software (Enterprise Resource Planning software). In addition to housing the application software, the ASP provider can also serve as an outsourced IT department providing a number of services ranging from technical support to back up and recovery activities.

Why Should a Company Consider an ASP Based Solution?

For many businesses, the decision to select an ASP or not is a matter of simple dollars and cents. Small start-up companies or small businesses on the verge of growth frequently use entry level software such as QuickBooks or Peachtree. Over time, these software packages are unable to manage the complexities that are emerging within a growing company’s business operations. These growing companies have the desire to move to more advanced software such as an ERP software package but lack the budget or IT staff to support such a purchase. This is when the ASP model becomes an invaluable resource for the free spirit of today’s entrepreneurs.

Utilizing an ASP or outsourced IT staff allows a company to immediately take advantage of the functionality within an enterprise-based business management solution, without the debt and IT staffing requirements associated with managing ERP software, databases, and a network infrastructure.

Interested in learning more? View an online demonstration or download product brochures. Or if you would like immediate answers to your specific requirements, contact TGI’s corporate office to speak with a sales representative at 800-837-0028.