Nowadays, people in urban areas find it impossible to live without computers or the internet. Research, entertainment and business all occur on the World Wide Web. But with these demands, it cannot be avoided that the software needed to be able to achieve such internet programs are also becoming more complex and expensive. And that is why there is what we call an application hosting provider. It’s a company or a business that provides computer and software related services to clients through a network. This model is also often referred to as Application service provider (ASP). This model cuts down the growing complexities and costs needed in distributing and administrating specialized software to end-users.

There are different kinds of provider types that fall under the ASP model. The vertical market ASP provides a solution package that has a specific function, such as the one for dental practice. An enterprise application hosting provider on the other hand delivers solutions which are broad and cater to several internet business needs. A local ASP provides services for small scale businesses within a small or a slightly limited area. And the functional ASP provides a single application that likened to credit card processing. If you are familiar with Paypal, it is also an ASP