The Web and the Internet began to really heat up and receive significant media exposure starting around 1994. Initially, the Web started as a great way for academics and researchers to distribute information; but as millions of consumers flocked to the Internet, it began to spawn completely new business models. Three good examples of innovative models include:

These different business models are all visible to anyone surfing the Web. One of the most interesting behind-the-scenes business models that the Web has created is called the ASP, or Application Service Provider. ASPs are a completely new way to sell and distribute software and software services. Although ASPs were possible before the advent of the Web, the Web makes them so easy to create that they have proliferated hugely in the last several years.

The ASP model can be extremely appealing to businesses -- especially small businesses and startups -- because it can drastically lower the costs of software and services. We will look at the ASP model from top to bottom so you can understand it completely. You will learn how it works, why it evolved and why it is becoming so popular.