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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. Hosted applications are hosted and powered from the remote cloud infrastructure and are accessed globally through the Internet.
Traditionally, businesses have had to build and maintain infrastructure to run on-premises applications. With the Software-as-a-Service (SaaS) model, businesses can consume applications that are hosted online, enabling them to lower their costs by paying only for what they use, enjoy seamless and painless upgrades in functionality, and integrate easily with their existing data and systems.
Hosted applications may also be known as Internet-based applications, Web applications and online applications, although these terms often have a larger scope.
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