An application service provider (ASP) is a company that hosts, manages and makes software applications available to customers remotely, usually over the internet or a private network. ASP is an older IT term that has largely given way to software as a service (SaaS), although historical sources used the two labels with different scopes.
What an application service provider does
An ASP provides access to application functionality from outside the customer’s own site. The provider operates the application and makes it available to users over a network; depending on the arrangement, it may also supply related support, staff and delivery infrastructure. TechTarget’s definition describes access to applications and related services over the internet. An account of the ASP Industry Consortium’s definition also includes remote data centers, multiple users, internet or private dedicated networks, trained staff and support services. That account illustrates why the term could cover more than simply running software on a server.
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The key point is the application service itself: customers use software that a provider delivers and manages remotely. Supplying infrastructure or generic web hosting alone does not necessarily meet narrower historical definitions of an ASP.
Why historical definitions of ASP differ
There was no single definition accepted across the early industry. In a 2001 article, GCN reported competing formulations that emphasized different aspects of the arrangement. The Information Technology Association of America’s ASP Committee defined an ASP as “any company that delivers and manages applications and computer services to subscribers or clients remotely via the Internet or a private network.” Gartner used a narrower formulation: “the delivery of preconfigured template software from a remote location over an IP network on a subscription-based outsourcing contract.” GCN’s 2001 account shows that the label could refer broadly to remote application management or more specifically to preconfigured, subscription-based software.
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IDC’s definition, as reported in the academic account, described a contractual service to deploy, host, manage and provide access to software from outside the customer’s site. The same account says Gartner excluded pure infrastructure provision and required the provider to deliver application functionality. The historical overview therefore supports a practical distinction, not a universal checklist: the provider’s role, the software arrangement and the contract all affected whether a service was called an ASP.
ASP, SaaS and ordinary hosting
ASP is best understood as an earlier label for remotely delivered application services. TechTarget notes that SaaS has largely replaced the term, though some sources still use ASP and SaaS interchangeably. The labels overlap, but they should not be treated as exact synonyms in every historical context: some ASP arrangements involved a customer purchasing software and paying a provider to host and manage it. TechTarget’s explanation describes that older pattern.
| Term | What the provider supplies | What the distinction does—and does not—mean |
|---|---|---|
| Application service provider (ASP) | Remote access to application functionality, with hosting and management; historical contract and licensing models varied. | An older, variably defined label. Some definitions were broad; others required preconfigured software and a subscription outsourcing contract. |
| Software as a service (SaaS) | Software delivered as a service over a network. | The more current, commonly used label. The sources describe substantial overlap with ASP, not a strict dividing line that applies to every case. |
| Traditional hosting | Computing infrastructure or a place to run software. | Hosting alone does not necessarily make a provider an ASP under narrower definitions if it does not deliver application functionality. |
Cloud computing provides useful context but does not automatically settle whether a service qualifies as an ASP. A FBI-hosted CJIS resource reproduces NIST’s cloud definition and distinguishes service models such as SaaS and PaaS. That taxonomy should not be read as proving that every service historically called an ASP fits a cloud category in every formal classification.
ASP can have a specialized meaning in a standard
Outside general IT usage, the acronym can be defined for a specific technical domain. In ISO 15638-23, a vehicle-telematics standard, “application service provider” means “party that provides an application service.” The ISO Online Browsing Platform entry gives this standard-specific definition. It should be read within that standard’s scope rather than substituted for the broader historical IT meaning.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to interpret ASP in a document
When you encounter “ASP,” use the surrounding context to determine what the writer means. Look for these clues:
- Application responsibility: Does the provider deliver and manage the application, or only rent out infrastructure?
- Software ownership or licensing: Did the customer buy or license the software separately, or is access packaged as a service?
- Contract model: Is the source describing a subscription or outsourcing contract, as in Gartner’s historical formulation, or using a broader service definition?
- Network and users: Is remote access provided over the internet, a private network, or both?
- Time and domain: Is the term being used in an older IT discussion or under a domain-specific standard such as ISO 15638-23?
These clues help identify the intended usage; they are not a universal test for classifying every provider.
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