This question was asked during the Proformative
What are your thoughts of "hosted" applications where you pay for the perpetual licenses but have the solution provider host? (Webinar Attendee Question)
Answers
This is really on-premise but you are accessing the application via a VPN, etc. What you do not get it instant upgrades - you still need to co-manage that with your hosting provider, or do it yourself it you are co-locating.
The application is not internet based and mobile acces may not be possible or minimal at best.
Hosted services date back to the early years of commercial computing, when companies would purchase processing time from mainframes hosted by other companies. These days hosted services generally take the form of more generic business applications including website hosting, email servers, off-site backups, data warehousing and that sort of thing.
Make sure there is a clear Service Level Agreement with the provider.
Thoughts on the subject are that there are may solutions and services, and it is generally recommended that you see if the solution makes sense for your specific business. When you buy a license, and then hand over the software to a hosting provider, the benefits are you get to use the software (on a virtual platform) without having to install, update, upgrade or maintain the application. The concept is often referred to as "Managed IT", meaning you don't need to buy a server or have a tech. install and run software for you to use. You outsource it and simply access your hosted applications over the internet.
These days with the latest in connectivity software and brokers, mobile access is one of the key benefits. Although an application is not internet based, or SaaS based, it is accessed over the internet anytime it needs to be used. Hosted applications also generally give people the full functionality of desktop software. So it's great for larger apps, or software with SQL backends, that people want to access and use on a variety of devices or at a variety of locations.
Although hosting providers, like the one I work for (InsynQ), do manage exchange email servers and have off-site backup, they do not offer website hosting. That is a common misconception that occurs from the use of "hosting" as a blanket term. Two fairly different industries...application/software hosting...website hosting.
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