Many clients questions that what exactly hosting an application means. It has an easy concept, hosting an application or we can say application hosting is a web based solution that enables clients to run software applications via cloud on a recurring basis and is generally provided by an ASP i.e, Application Service Provider or Application Hosting Provider.

The requirement for ASPs has evolved from the increasing costs of specialized software that have far surpassed the price range of small to medium sized businesses. As well, the growing complexities of software have led to maximum costs in distributing the software to end-users. With the help of ASPs, the complexities and costs of such software can be cut down. In addition, the problems of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date services, 24 x 7 technical support, physical and electronic security and in-built support for business continuity and flexible working.

A hosted cloud system can be leased or rented on a monthly or annual basis, thus discarding the need to buy expensive equipments, the main reason is that most of the equipments are hosted by the service provider and all communication is routed through that provider to and from your company's site or sites. Application hosted environment setup has an advantage in terms of cost of operation, and it is also easier to install, increases the flexibility and allows communicating from any part of the world with just an ease.

Hosted cloud solution is very inexpensive to operate, and as usage and number of user increases, the cost advantage of hosted application systems simply disappears.

Now next question is what is Hosting means?

Hosting is a software application distribution system where clients application such as CRM, Location Intelligence or others, are maintained and managed by a qualified service provider and made available to clients, as a service over the WWW. Exactly, this means that an application exist on the provider’s servers instead of clients personnel in-house servers. The application software can be instantly accessed and shared by client sales/marketing, through a web browser.

Hosted applications are hosted and driven from the remote cloud infrastructure and are accessed throughout the world through the Internet. They provide the same functionality as locally installed software but can be updated more easily.

Hosted applications also called as an Internet-based applications, Web applications and online applications, although these terms often have a larger scope.