B2B allows companies to do business with their supply chain through the web. There are many business applications such as accounting and human resource packages that can be very expensive and therefore may be prohibitive for small to medium-sized businesses. Application Service Providers give access to these applications through the web. Essentially they allow a company to rent these applications rather than buy them. The cost of the applications are split amongst all the companies using the services and each company pays either a flat monthly fee for the ASP or pays for the amount of time they spend using the applications.
ASPs are among the fastest growing segments of the web.