Application Hosting also known as ASP or the Application Service Provisioning is defined as the outsourcing or rental of different business or trade applications from any application supplier instead of setting the software inside.

The job of ASPs differs from the other hosting firms. These service providers mainly specialize in offering unparalleled support and service for external electronic distribution of diverse mission-critical trade applications.

The Application Service Provisioning combines networking, hardware and software technologies in order to provide a unique service based business application like ERP or resource planning, e-commerce, mail hosting and other collaboration tools.

Under the model of ASP, any service provider can own a part or whole of the infrastructure. It should be noted that on this infrastructure the various business applications and coordination of software development or licensing, hardware purchases and other network connections depends.

ASP services are provided on rent for the convenience of customers. Generally, it is rented on per user and on per month basis. The share costs of ASPs are higher as the worldwide corporate managers value the cost savings that they can generate from this application.

Some of the popular solution provided by the professional ASPs includes benefits management and human resources payroll solutions. Microsoft Exchange is one of the well known corporate mutual software offered by the ASPs.

Over the years, with its unique services, the Application service providers have emerged as the most famous Internet Presence Providers or the IPPs. Most of the enterprises include it to rationalize and integrate their varied IT operations.

Besides, application hosting solution, one will also find grid hosting solution and managed server hosting solution available for helping different clients.