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Application Service Provider (ASP)

An application service provider (ASP) is defined as an enterprise that delivers application functionality and associated services across a network to multiple customers using a rental or usage-based transaction-pricing model. Gartner defines the ASP market as the delivery of standardized application software via a network, though not particularly or exclusively the Internet, through an outsourcing contract predicated on usage-based transaction pricing. The ASP market is composed of a mix of service providers (Web hosting and IT outsourcing), independent software vendors and network/telecommunications providers.