Domestic ASP (Application Service Provider) market has been dramatically enlarged under government supports for last 10 years. However ASP industry recently has been troubled for poor performance and market saturation. In this paper, firstly I derive core service groups through using BCG matrix for ASP market size and growth rate and secondly generate major critical success factors using focused group interview for selected core service groups. Finally I would like to propose a direction of ASP industry revitalization based on above critical success factors and transition strategy to SaaS (Software as a Service).