Hosted Software Explained

For any business to succeed, the costs have be monitored constantly. You need to know where you can make savings to increase on your profit. This goes for all aspects of your business including the software that you run. With the ever changing technology, today, businesses have various options of deploying their software. To succeed, you have to be aware of these options and just how they can work to the benefit of your company. In this piece, we seek to understand hosted software, the benefits and pitfalls that it comes with.


When you are looking to introduce a new software into your business, you need to make several choices regarding the mode of deployment you will use. As such, you will need to ask yourself if you will install it in the same premise as your business, if you will host it remotely or have it in cloud technology.

Hosted Software is where the software is installed in servers in a datacentre that provides you with online access to the business applications you are in need of. It is very different from Software as a Service (SaaS) since it is ideally a licensed product owned by a particular product. SaaS on the other hand is more of renting access to your software. For this, you make payments to access your software.

Cloud hosting also varies from remote hosting. In remote hosting, the software runs on a virtual server away from the business while in cloud hosting, the idea is essentially the same only that it comes with the added benefit of scalability which many start-ups benefit from.

How does hosted software work?

Just like it is the case with on premise software, you purchase hosted software under licensing. After getting the licensing, the recurring costs for the hosted software will be part of the commercial model the vendor provides along with management and maintenance.

The fees paid are essentially to cover the fixing of bugs that will inevitably occur and updates. Also when choosing this type of software, you will also need to factor in the costs of installation and the monthly fees for hosting the software.

Strengths of the hosted software

Everything, regardless of how great they might be come with pros and cons. It is these pros and cons that will determine the decision that you make. The software drawback totally depend on your business requirements and the challenges that you are looking to overcome using the software. That said, below are some strengths you ought to consider concerning the software.

Reliability and robustness

Many of the hosting software services come with crystal clear service level agreements stating just what you should expect from them with regards to reliability. Many hosting centres focus on redundancy, security and disaster recovery. With these services, the responsibility of ensuring the software performs as claimed and its uptime is solely on the service provider rather than the business, which is great for you. You can better focus your efforts on other business dealings.

Complete maintenance

Getting a hosted solution for your business, needless to say will save the business a lot of time and money. This is especially important if you an entrepreneur and the business you are running is not in the tech industry. With freed up resources, your organisation can make great use of the technology to achieve the goals of the business/company.

Ownership of the software

With hosted software, contrary to popular belief, you own the software. As early stated, the only thing you pay for is the hosting service and maintenance of the software as a whole. This is of great benefit when it comes to predicting business and keeping track of your cash flow. But even if you do not pay for the maintenance, you can still sufficiently use the version you are running.

When hosted software is not best

With the above advantages, you might be tempted to jump on it without a second thought. However, it is important that you pause and make some considerations to determine whether the business you are running and the model is right for a hosted software.

In the event the maintenance costs are high, considerably high than what the business can handle, you should think twice. Also, note that this option will require a stable and reliable internet connection with a considerably large bandwidth to make use of the service. Failure to which the business might be susceptible to disruptions.

If you would want to discuss the suitability of this software option for your business, give our friendly customer care a call today.