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The whole area of service provider naming is certainly a confusing one. In
general, an ASP (application service provider) provisions, hosts and
manages business applications (such as accounting, SFA, HR, etc.) for a
customer. In doing so, they also provide all the infrastructure and
management services required below the application layer, but only for the
applications that they offer and support.
An AIP provides hosted and managed technology and infrastructure services
below the application layer--i.e. they will host and manage the operating
system, database, middleware, hardware and other components below the
application layer for a customer, who then manages their own business
application--whatever that may be. AIPs are also called managed service
providers.
Hope this helps!
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