ASP (Application Service Provider)

Definition: An application service provider hosts software applications on its servers at its location. An organization registers to use the application and accesses it over the Internet or a private connection.

What This Means: Instead of paying the expense to buy hardware and software, an organization can “rent” them. Additionally, the vendor will install and maintain the software on its own computers in a secure location. The organization delegates not only that responsibility to the vendor, but also the responsibility to hire and train staff to operate the application.

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