An application service provider is a company that creates a subscription based software service. Companies that subscribe to an ASP's services, use the applications just as consumers use telephone voice mail. The user simply pays the phone company a monthly bill to access its technology. Just as renting voice-mail capability allows the consumer to avoid buying, maintaining and replacing and answering machine, subscribing to an ASP allows companies to avoid purchasing, installing, supporting and upgrading expensive software applications. An airline is a classic example of a non-Internet ASP, and It therefore makes a great starting point into your understanding of ASPs.
Many small businesses use airlines extensively.
Many individuals also fly frequently for business and pleasure. Yet the number of businesses and individuals that own their own airplanes is extremely small. Instead, we rely on airlines to provide travel services to us on a per- use basis. The main reason for the lack of plane ownership is the extremely high cost of entry. Let's say that you would like to own and operate your own jet.