Due to higher speed broadband becoming available, more and more businesses are now turning to hosted applications for their everyday needs.
What is a hosted application?
We’re glad you asked.
By definition, a hosted application is a software as a service (SaaS) solution that allows users to execute and operate a software application entirely from the cloud on a recurring subscription.
These applications are typically hosted and powered from the remote cloud infrastructure and are accessed globally through the Internet. They provide the same functionality as locally installed software but can be updated more easily.
Instead of installing and using applications such as the Office suite on your own computer, it is now possible to access word processing applications, spreadsheet and presentation applications online. For example, ‘Google Docs’ are a set of standard office-suite type of applications hosted online by Google.
Let’s talk advantages.
For smaller companies, the benefits from using hosted applications are many.
- The responsibility of managing the application lies with the vendor. You simply buy licenses for the application.
- Since the application is already installed and running in the cloud, you can get a license and begin instantaneously using the application.
- Applications are kept updated so that users use the most recent version.
- The service provider can see which areas of the application are used most heavily and where any bottlenecks are being experienced. This ensures that application development is closely tailored to emerging user requirements.
- The overall application is far more robust as your data is replicated into multiple data centers. This allows for more elaborate disaster recovery procedures in place.
Another advantage of hosted applications is that instead of buying software, you’re renting it. This shifts the expenses from capital expense (Capex) to an operating expense (Opex), making your potential tax burden much lower. If your company uses SaaS for most of its operations, there will likely be very significant savings.