Application Service Provider or ASP is third party Company which manages and distributes application software services and solutions from a central data center to different locations on a WAN.

Application Service Providers are divided into five categories :

1. Enterprise ASPs : Enterprise ASP deliver high end business applications.
2. Local/Regional ASPs : Supply application services for smaller businesses in a local area.
3. Specialist ASPs : Specialist ASPs provide applications for special need such as some ASPs provide web services only and others may provide human resource services.
4. Vertical Market ASPs : provide support to a specific industry, such as healthcare.
5. Volume Business ASPs : supply general small/medium-sized business with prepackaged application services in volume.

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