ASP drives down operating costs and allows IT management and personnel to focus on other more mission critical responsibilities. In effect, ASP can increase IT salary efficiency and allow IT professionals to perform functions closer to their company's core competencies.

	- Eliminate capital costs by   “renting” software - Increase tax efficiency, off   balance sheet financing - Lower cost of ownership - Reduce IT overhead

 Deployment of new software applications is often costly. Utilization of ASP can dramatically reduce deployment time and eliminate the need to hire costly IT support if it does not already exist. In addition, the “rental” cost structure of ASP hosted software is significantly different than outright purchase of software licenses. Operating costs are reduced as a result of: Elimination of capital costs (the software is “rented”); increased tax efficiency (off balance sheet financing); and lower cost of ownership (there’s less IT overhead).

 ASP also dramatically reduces or removes in-house IT tasks involving desk-side support and application support and upgrades, since those tasks are performed by the vendor(s).