Legal Definitions - application service provider

An Application Service Provider (ASP) is a company that hosts and manages specialized software applications on its own servers and then provides access to these applications for its customers, usually over the internet or a private network. Instead of purchasing, installing, and maintaining the software on their own computers, customers subscribe to the service and use the software remotely as needed. This model allows users to leverage powerful software without the responsibility of owning the software license or managing the underlying technical infrastructure.

• Example 1: A small marketing agency needs to manage its client projects and team tasks efficiently. Instead of buying and installing complex project management software, they subscribe to an online platform like Asana or Trello. The agency's employees log in through their web browsers to access all project boards, task lists, and communication tools.

  Explanation: In this scenario, Asana or Trello acts as the ASP. They host the project management software on their own servers and provide access to the marketing agency as a subscriber. The agency pays a recurring fee for the service and doesn't need to worry about software installation, updates, or server maintenance.

• Example 2: A freelance photographer needs to store and share large volumes of high-resolution images with clients. Rather than investing in expensive local server storage and complex sharing solutions, they opt for a cloud-based photo management and sharing service like SmugMug or Flickr Pro.

  Explanation: SmugMug or Flickr Pro functions as an ASP. They host the photo management software and storage infrastructure. The photographer pays a subscription fee to upload, organize, and share their photos through the ASP's platform, accessing the service via a web browser or dedicated app without owning the underlying software.

• Example 3: A non-profit organization wants to manage its donor database and fundraising campaigns. They choose to use a cloud-based Customer Relationship Management (CRM) system specifically designed for non-profits, such as Salesforce for Nonprofits.

  Explanation: Salesforce for Nonprofits operates as an ASP. It hosts the sophisticated CRM software on its servers and provides the non-profit organization with access to its features for managing donor information, tracking donations, and coordinating outreach efforts. The organization pays a subscription and accesses the system remotely, benefiting from the software's capabilities without the need for local installation or IT support for the application itself.