A hosted application is one that is offered to customers on a subscription basis and includes all the information technology (IT) infrastructure (hardware, software) and support services (IT staff) necessary to deliver them. Applications are typically hosted at a data centre and accessed over the Internet or a private network.

The use of hosted applications eliminates the costs and complications of traditional client server software while providing the most current application software along with the latest in technology and security.

Benefits

	Instant and continuous access to the latest technology you need to run your business - without the risks, costs and administrative responsibilities associated with developing and maintaining the required IT infrastructure.
	Improved ability to focus resources on core business issues, rather than IT concerns.
	Faster implementation of new applications and technologies - with reduced risk to your existing systems environment and bottom line.
	Ability to scale and deploy rapidly to meet growing business needs.
	Access to comprehensive security, back up, disaster recovery and support services.
	Access to applications without the burden of maintaining a distributed computing environment.
	Eliminate the purchase, installation, upgrading, and maintenance of software and hardware.

The customer of a hosted application;

1. Owns their own data
2. Focuses on their business, not on software operations
3. Pays a small part of the total cost for the application, hardware, system support and upgrades
4. Subscription fee is either on as per-user basis, a monthly/annual fee basis or a combination

The provider of the hosted application;

1. Owns, operates, maintains, and supports the software application.
2. Does not own the customer's data.
3. Owns and operates the servers that run the application.
4. Employs the people needed to maintain and enhance the application.
5. Makes the application available to customers everywhere via the Internet, typically through a browser.