In computer software, business logic or domain logic is the part of the program that encodes the real-world business rules that determine how data can be created, displayed, stored, and changed.
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The fundamental model with MSML is that the Media Server is an appliance that is specialized in controlling/manipulating media streams (usually RTP), and the application server is a separate unit that deals with making and breaking call connections, and controlling the application (or business) logic, so for example the application server would deal with the billing engine and logging systems.