Since early 1997 Candor Technologies recognised a new emerging trend: Application Service Provision (ASP). In simple terms this is an outsourced web-based application service offered to companies.

Instead of companies outlaying tremendous capital costs for new computer applications, they have the option of cost effectively 'renting' these applications from an ASP. The ASP Consortium's definition is "An ASP manages and delivers application capabilities to multiple entities from a data centre across a wide area network. Application Service Providers offer a simple and cost-effective alternative to managing technology in-house and help customers precisely control the total cost of technology ownership".

Recognising this trend, Candor was quick to not only convert all of its own internal applications to the ASP model, but similarly develop ASP software for customers. Creating differentiation and transforming into a software developer, Candor separated itself from the over-saturated, minimal-margin ISP market.
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