Hosted service provider

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A hosted service provider (xSP) is a business that delivers a combination of traditional IT functions such as infrastructure, applications (software as a service), security, monitoring, storage, web development, website hosting and email, over the Internet or other wide area networks (WAN).^[1] An xSP combines the abilities of an application service provider (ASP) and an Internet service provider (ISP).

This approach enables customers to consolidate and outsource much of their IT needs for a predictable recurring fee. xSPs that integrate web publishing give customers a central repository to rapidly and efficiently distribute information and resources among employees, customers, partners and the general public.

Hosted Service Providers benefit from economies of scale and operate on a one-to-many business model, delivering the same software and services to many customers at once. Customers are charged on a subscription basis.