Application service providers (commonly referred to as ASP’s) have quickly sprouted onto the web hosting scene in effort to provide businesses with new and innovative services. The term ASP should not be confused with Microsoft Corporations software application.

The number of applications provided through the ASP model is growing. Accordingly, there is a growing business of companies developing software for the ASP marketplace. What sorts of applications are being developed? As remotely-hosted applications can provide cost-effective access for businesses to unique software, many of the applications are designed to be of occasional use in terms of use. Others are geared towards using group connectivity provided by through the Internet to provide an application that is flexible.

ASP’s have created software programs to handle various business functions as materials management, human resources, financial management, and e-commerce transaction services.

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