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). 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.
As defined by analyst Ovum.
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