What is the term for purchasing software and providing it to a third party that installs and manages that software?

The term for purchasing software and then providing it to a third party that installs and manages that software is known as an application service provider (ASP). This model allows businesses to outsource the responsibilities of software management and hosting to an external entity, which can help reduce the operational burden on the company while ensuring the software is maintained and supported by experts in that specific application.

An application service provider typically handles everything from installation to ongoing maintenance and updates, making software solutions more accessible and manageable for businesses, particularly those without robust IT departments. In this context, the ASP delivers the software over the internet, allowing users to access it from various locations without needing to install it on individual machines.

Virtualization refers to creating virtual versions of physical resources, such as servers or storage, and is not specifically about software management by third parties. Platform as a service (PaaS) describes a cloud computing service that provides a platform allowing customers to develop, run, and manage applications without dealing with the complexity of building and maintaining the infrastructure. A private cloud refers to a cloud environment operated exclusively for a single organization, providing tailored resources but not specifically focusing on third-party software management.