An Application Service Provider (ASP) is a company or organization that provides software applications to consumers via the Internet. Essentially, the entity charges a fee to rent ASP software. The software is accessed remotely via a web browser by the consumer who rents it, with no computer installation on the local drive.

The benefits of an ASP are mostly dependent on the security and comprehensive services provided. The programs sold by the organization enable businesses to outsource entire administrative departments, reducing risks and conserving resources. 

The software programs might be leased in part or in full in this context. Another advantage of the ASP is that computational power and system resources are relocated to the provider's server, reducing the company's system requirements.