ASP Business Models

A business model specifies how a firm will generate money to sustain its operations and to generate the desired rate of return. Business models usually specify how the firm will generate revenue and the specific tactics it will use to operate within the industry. An ASP generates a revenue stream either through monthly fees or through per user fees. Based on target markets and products, ASP may be classified into Enterprise ASP, Local/ Regional ASP, Specialist ASP, Vertical Market ASP, and Volume Business ASP (ASPnews.com). Enterprise ASP deliver high-end business applications such as enterprise resource planning software, e-commerce applications and supply chain management applications. Local/Regional ASP supply wide variety of application services for smaller businesses in a local area. Specialist ASP provides applications for a specific need, such as Web site services, human resources, customer-relationship management software. Vertical Market ASP provides support to a specific industry, such as healthcare, finance etc. Volume Business ASP supply general small and medium-sized businesses with prepackaged application services in volume.