Hosting your business applications has significant advantages over the traditional client/server type applications. Essentially, a hosted application is when an ASP or Application Service Provider will host one or more applications on behalf of a company and provide access either through dedicated lines or more simply through Internet connections. The business advantages to customers include:

• Lower cost of management and operation. Since the task of managing and running the application on an on-going basis is off-loaded to the ASP provider, the customer does not need to hire and train in-house staff to manage the application.
  
  
• Quicker implementation. ASP-delivered enterprise applications can often reduce the complexity of installing a new system. In addition to removing many issues relating to hardware and networking, ASPs often aim to deliver a standardized configuration, thus reducing time to go live.
  
  
• Focus on business, not technology. Since the ASP will also be providing application management services, the customer gains access to trained personnel right away. This enables the customer to use the in-house IT personnel to solve core IT issues and focus on the strategy of the enterprise.
  
  
• Keep current on the latest technology. Customers can automatically leverage the latest technology in their system without incremental upgrade expense or the hassles of upgrading the system themselves.
  
  
• Predictability of costs. One of the benefits of the ASP is that costs are fixed and can be calculated easily throughout the year, which makes it easier to budget accordingly. 

Finally, applications that have traditionally been reserved for the largest companies in the world are now more affordable and available to companies of all sizes - all thanks to ASPs.

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