Application Service Provider is a new concept that is gaining ground fast due to the popularity of the Internet. An ASP is a service provider who offers access to applications and other related services over the internet which otherwise the enterprise has to acquire and place on its own resources.

ASP’s are an important alternative to many enterprises with low budgets and also are a form of outsourcing for many individuals as well. Some of the prominent applications include Remote Access Services for users of an enterprise, remote databases that are applied on a pay per use basis, a centralized server for remote users and also as a source for expensive applications that would be expensive to install and maintain. Hewlett Packard and SAP have formed an alliance in which the latter’s products especially SAP’s popular R/3 products will be offered.