Abstract

This chapter provides an overview of application service provision (ASP). As an e-Business model is targeted largely at small and medium enterprises, ASP is a form of outsourcing application that is designed to offer customers a hosted (remote) software delivery option. It is priced on a subscription or pay-as-you-go model. By 2000, ASPs has emerged in various guises. The enterprise ASPs offer vanilla- enterprise resource planning (ERP) software to the small-to-medium business (SMBs), the vertical ASPs targeted specific industry sectors, the horizontal ASPs offer business software applications, the pure-play ASPs deal only in software applications designed to be Web enabled, and finally, ASP-enablers are composed of technology sector firms that provides the IT infrastructure. The chapter also discusses Web services. Technically, Web services have shorter development time, more reliable code, and more efficient use of development resources. Both object orientated and component computing cannot solve the interoperability issue among heterogeneous IT systems. Web services vendors and the industry in general should ensure that Web services provide seamless integration between software applications and platforms to avoid enterprise silos. Otherwise, customers may be reluctant to extend their investment in Web services.

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