(Application Service Provider) Hosted software contractor. An ASP operates software at its data center, which customers access online under a service contract. The first wave of ASPs were application outsourcers, who hosted software packages from established enterprise software vendors such as SAP, Peoplesoft and Oracle. They are being superceded by a larger group of 'web-native' or 'net-native' ASPs, who have developed their own software, often using open-source platforms such as Linux, Apache and Perl, specifically for delivery as a hosted service.