Application Service Provider (ASP) Agreement (Service Provider)
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Many businesses make use of specialised software. The costs of such
software can be extremely high – too high for many small and medium
businesses. This is where ASPs (Application Service Providers) step in.
ASPs provide access to software to their customers over a network. This
significantly reduces both the cost and complexity burden on businesses,
enabling those with limited resources to access specialised software which
would otherwise be out of their reach.
The ASP owns both the software and the equipment on which the software is
hosted. This reduces the burden on the end users of the software in that
maintenance obligations and the costs associated therewith are borne by the
ASP. As a result, the customer does not have to be concerned with
fluctuating and unpredictable costs; rather their IT costs will amount to
little more than a simple, known monthly fee. Moreover, software and
supporting infrastructure will be regularly updated.
This ASP Agreement (Service Provider) has been written with such services in mind and is
designed for use by ASPs to govern the provision of their services to a
wide variety of customers.
The terms of this agreement are designed to favour the ASP. For example,
the ASP is not required to indemnify the customer for losses that may be
sustained, and fees may be increased without giving the customer the right
to terminate the agreement as a result.
A customer-oriented version of this document is also available.
Furthermore, under this agreement, training is the responsibility of the
customer. Two alternative versions, each providing for the provision of
training by the ASP are also available.
Optional phrases / clauses are enclosed in square brackets. These should be
read carefully and selected so as to be compatible with one another. Unused
options should be removed from the document.
This ASP Agreement (Service Provider) contains the following clauses:
1. Definitions and Interpretation
2. The Service
4. Fees and Payment
5. The Applications
9. Software Licenses
11. Customer Computer Systems
13. Intellectual Property
14. Customer Data
18. Force Majeure
21. Relationship of Parties
24. Entire Agreement
25. No Waiver
27. [Dispute Resolution (Arbitration)]
28. Law and Jurisdiction
And the following schedules:
3. Third Party Software Licenses
4. [Reasonable Usage Policy]
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