Hosted services mean outsourced IT structure of any firm. There are many businesses who do not prefer to spend thousands of dollars in establishing an IT infrastructure themselves and they allow a different company to setup the whole IT infrastructure for them and deal with their clients through internet. There are two kinds of hosted services, shared and dedicated. they are selected depending on the need of the companies involved. In dedicated hosted services, the required server stations and hardware are dedicated to a single company and this ensure speed and increased security and reliability, while in shared hosted services there are multiple users using the same servers and all the other resources are pooled.

There are three things that make up a hosted service, platform services, software as a service and infrastructure as a service. The hosted services providers offer, networks, servers, and hardware requirements of the company.

Many people assume that cloud services and hosted services are one and same but the major difference between them is that hosted services not necessarily need an internet connection while the cloud computing requires an internet connection to work. Cloud services are usually free of cost while hosted services are costly, the cost is lowered only when the company opts for shared hosted services.

Companies opt for hosted services because:

  • Hosted services offer greater protection to the company data. This is the reason that company opt for hosted services. The data is also backed up effectively and the company constantly keeps upgrading the security gaps by identifying the issues and finding the right solution immediately. While as a standalone data ware house, company alone would find such facility difficult to maintain or very expensive. The backed-up data is constantly racked and redundancies are deleted to avoid lack of space.
  • The maintenance and monitoring is all done by the hosted services and thus company saves a lot of cost. The quality is provided as promised and any glitches are dealt with by the hosted service providers to make sure that the business of their clients keeps running smoothly.
  • The cost of maintaining IT department is quite high and this is the crucial factor that plays when the companies opt for hosted services.
  • The company who looks for hosted services do so, so that they do not have to splurge in IT related costs.

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