The cost of purchasing specialised software can sometimes be too high for a business or simply unnecessary. Application Service Providers help to alleviate this problem by providing one software solution to multiple users over the internet. As with any software licensing scenario, the customer’s use of the software should be carefully regulated.
The ASP Agreements in this subfolder do this and more. Not only is an ASP Agreement a software licence, but it also deals with important aspects of specialised software including training and support.
For additional flexibility when negotiating the terms of your ASP Agreement, variations with bias toward the service provider and the client are also available.
ASP Agreements is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.
Frequently Asked Questions
What is an ASP agreement, and is it the same as software as a service? +
An ASP, or application service provider, agreement is for supplying software to multiple users over the internet rather than installing it on their machines. In practice it is an early form of what is now called software as a service: the customer accesses hosted software under a licence, usually with training and support. If you deliver software online instead of selling copies, this is the contract type built for that model.
I deliver software online, do I need an ASP agreement or a plain software licence? +
Use an ASP agreement where you host the software and the customer accesses it online, because it combines the licence to use the software with the hosting, training and support around it. A plain software licence suits software the customer installs and runs itself. The key difference is that you are providing an ongoing service, not just permission to use code, so the contract needs to cover availability and support as well as intellectual property.
The ASP templates come biased to the provider or the client, which should I use? +
Pick the one that reflects your side and your bargaining position. The provider-leaning version tightens control, limits liability and protects the provider's intellectual property and payment. The client-leaning version pushes for stronger service commitments and customer protection. Start from the version that matches your role, then negotiate from there. Both share the same core ASP structure, so they are straightforward to compare.
Customer data will pass through my hosted software, is data protection dealt with? +
It needs to be. If you process personal data on the customer's behalf through your hosted software you are a processor, and UK GDPR Article 28 requires a written contract with set terms on instructions, security, sub-processors and the rest. Add data processing wording to the ASP agreement wherever personal data is handled, and align it with your security measures. Hosting other people's data without Article 28 terms is a compliance gap.
