An ASP is an independent third-party provider of software-based services which are delivered to customers across a wide area network.

The ASP community represents a new global industry devoted to reliable, predictable and efficient delivery of advanced application services to a broad range of businesses. These services encompass enterprise resource planning (ERP) systems , customer relationship management solutions, groupware, and personal productivity suites of software.

Through application hosting, ASPs remove the burden of day-to-day IT management by assuming full responsibility for the delivery of the application, the support and ongoing maintenance.

As a result, organizations are free to focus on their business rather than on the IT infrastructure necessary to do that business.