There are several forms of ASP business. These are:

• A specialist or functional Application Software Provider delivers a single application, such as credit card payment processing or timesheet services;

• A vertical market ASP delivers a solution package for a specific customer type, such as a dental practice;

• An enterprise Application Software Provider delivers broad spectrum solutions;

• A local ASP delivers small business services within a limited area.

The ASP model can be extremely appealing to businesses — especially small businesses and startups — because it can drastically lower the costs of software and services.