Hosted software is business concept where a service provider rents out a specific computer program to companies or individuals.  This can unburden end users of paying stiff licensing fees for commercial software use.  It will also be convenient for customers to opt for hosted software because it does not require costly hardware infrastructure.  A client only needs a computer desktop and an internet connection and the software can be used almost immediately.

Hosted software has been in the market for several years already. But it gained popularity in recent years primarily because companies want to streamline their software solution deployment.  Hosted software also benefits companies operating on a wide network.  Through hosted software, the need for a cumbersome computing facility has been eliminated and companies can enjoy the flexibility of computer applications accessible over the Internet.

A service provider offering hosted software can also provide unlimited storage and data archiving services for their clients.  This component service unclogs the information overload of companies which is a big headache for most company information officers. 

Hosted software companies also have their own technical support staff to maintain flawless running of applications and to provide glitch free processing of business solutions and data.  Companies can now lower their cost of maintaining redundant services such as the upkeep of servers and software maintenance. 

The potential of hosted software in giving companies complete computing benefits has been proven to work.  This is the reason why application service providers are gaining renewed vigor in the IT market. 

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