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Application Service Provider
Sometimes abbreviated as ASP (not to be confused with Microsoft’s Active Server Pages (ASP).
An application service provider is a technology vendor that supplies software and or hardware applications usage to businesses over the Internet.
Businesses can use the software applications owned by ASP’s rather than make their own capital investment in hardware and software.
Because of economies of scale (the main benefit of the ASP business model), ASP’s can pass on big savings and capital cost reductions to their customers.
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