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The great promise of software‐as‐a‐service lies in its ability to deliver at a much lower cost and at much greater speed. In the future, software will be delivered in such a way that business customers can pick and choose entire applications or parts of them, paying on a per‐use or subscription basis. To fulfill this need, a new type of business enterprise has arisen, application service providers (ASPs). This paper identifies various success factors, or best practices selection guidelines, potential ASP customers/users should consider when choosing an ASP. These success factors were developed – using experiences of successful ASPs presented in groups based on their underlying business models – from customer requirements, a major driver in the ASP market.