Other models such as IT outsourcing, application management, and web hosting differ from the ASP model, since each of these alternatives require the buyer to own the application, and choose one of these methods of managing it. The value of the ASP model extends beyond reduced investment for both the vendor and the buyer. This significantly reduces development cycles, delivers upgrades instantaneously and makes the notion of installation obsolete. The rapid pace of development and upgrade ensures the buyer will never be faced with an outdated application. ASP vendor owns the product and thereby is responsible for its maintenance and delivery.
Service delivery is centralized, eliminating variances in service quality.