Background Note | HBS Case Collection | January 2001

Application Service Providers

by Thomas R. Eisenmann and Sanjay Pothen


Examines the Application Service Provider (ASP) business model. First, defines the ASP model and describes different ways to categorize ASPs. Next, summarizes the various ways that ASPs create value for their clients. Then, analyzes the economic model for ASPs, focusing on their revenue and cost drivers. Last, examines the payoff to ASPs from pursuing aggressive growth strategies.

Keywords: Business Model; Web Services Industry;


Eisenmann, Thomas R., and Sanjay Pothen. "Application Service Providers." Harvard Business School Background Note 801-310, January 2001.