Application Service Provider - Provider Types

Provider Types

There are several forms of ASP business. These are:

  • A specialist or functional ASP delivers a single application, such as credit card payment processing or timesheet services;
  • A vertical market ASP delivers a solution package for a specific customer type, such as a dental practice;
  • An enterprise ASP delivers broad spectrum solutions;
  • A local ASP delivers small business services within a limited area.

Some analysts identify a volume ASP as a fifth type. This is basically a specialist ASP that offers a low cost packaged solution via their own website. PayPal was an instance of this type, and their volume was one way to lower the unit cost of each transaction.

In addition to these types, some large multi-line companies (such as HP and IBM), use ASP concepts as a particular business model that supports some specific customers.

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