vertical solutions provider (VSP) definition

On the Internet, a vertical solutions provider (VSP) is a company that focuses on delivering industry-specific application hosting services to customers in a specific vertical market such as manufacturing, health care, retailing, or financial service. A VSP is a type of application service provider (ASP) that enables a company in a particular vertical market to take advantage of Internet technologies and applications without having to acquire the know-how and other resources on its own. For example, a retailer could hire a VSP to configure and administer its shopping cart, inventory management and credit-card processing applications on a continuing basis, saving the company the need to hire, train, and pay its own administrators.

Companies seeking VSP services may be independent dot-coms or other start-ups or they may be companies that are launching an e-commerce branch of their existing business.

This was first published in September 2005

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