What Are the Advantages of the Hosted Software Model?

hosted software model advantages
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The rise to power of cloud hosting solutions has been so impressive in the past few years that even the skeptics now admit it’s worthy of being taken into consideration. With cloud infrastructure spending surpassing $80 million in 2018 and the global cloud computing market on track to reach $623 billion by 2023, it’s more apparent than ever that no organization should neglect what cloud solutions can do in the way of boosting productivity and business agility.

According to the latest research, public cloud IT software (SaaS) and platform services (PaaS) reached $136 billion worldwide, and adoption rates are going up. If your organization hasn’t made the transition to the cloud yet, the hosted software model can also be an option to keep in mind. In fact, statistics show that 60% of workloads were running on a hosted cloud service in 2019. Let’s find out what benefits are behind these skyrocketing numbers and how your organization can benefit from the hosted software model.

Remote Accessibility

Not very long ago, working from home was a perk that only a handful of companies offered to their employees. Now, in the context of the Coronavirus pandemic, working from home has become an absolute necessity, and experts say that this could mark the beginning of the end for commuting. Previously, only 7% of Americans could work from home, but now these rates are increasing. What’s more, businesses are beginning to understand that working from home doesn’t have to compromise productivity and that many tasks can be done remotely.

But, at the same time, the sudden switch to a WFH model has made many business owners realize that they need remote access for their software. To avoid bottlenecks and stay productive when working from home, employees need anywhere access to connect and collaborate with other team members. Otherwise, bottlenecks can occur, and that can trigger major liabilities in your business processes. The last thing you want is to revert to obsolete methods when working remotely.

Unlike on-premise software, which can only be accessed from the computers at the office, the hosted software model means that your app is deployed on a cloud-enabled hosted site, where it can be accessed by anyone from any device connected to the Internet. This way, your employees can use company software from home as if they were at the office, and they can collaborate as usual. As more and more companies are starting to consider implementing flexible workplace options, the demand for hosted software will continue to grow. Still, there are many other scenarios where it can help. For example, if your employees have to go on business trips often or you want to stay connected while on the go, the hosted software model allows for seamless real-time communication.


Does your business still rely on hard drive copies? That could be an accident waiting to happen. According to the results of the 2018 Global Data Risk Report, a whopping 140,000 hard drive fails occur in the U.S. each week, and this means the loss of crucial company data. While this storage and backup option may have been the go-to in the past and there may still be a few scenarios where it can work, hard drives fail to provide the optimal security standards in most organizations.


  • Hard drives can malfunction on their own after many years of use.
  • Hard drives can become unstable.
  • They can be damaged by accidents and natural disasters.
  • They’re susceptible to human error.
  • They are vulnerable to computer malware and power surges.

Once a hard drive is damaged, data recovery is an option, but results aren’t always guaranteed, and there’s a considerable chance you’ll lose months’ worth of work in the blink of an eye. Besides, this is a lengthy, expensive process.

Switching to the hosted software model, however, eliminates most of these risks and gives you the peace of mind that your data is safe. Should something happen to your on-site devices, you know that critical business data is backed up in the cloud, where it can quickly be restored in the blink of an eye.

Cloud backups are, in fact, at the core of disaster recovery. Nowadays, businesses face more security risks than ever before, and failing to prepare for them can lead to crippling financial losses, not to mention the loss of consumer trust. According to a study by Ponemon Institute, 39% of small and medium-sized businesses don’t have a recovery response plan in place, even if more than half of them dealt with data loss in the previous year.

If security experts are right, corporate cybercrime will continue to accentuate in the following years, and the methods that hackers use will become more and more sophisticated. While there’s not much that business owners can do to stop cybercriminals in their tracks, investing in hosted software is one of the best ways to make sure your data is safely backed up, and you don’t lose the data you’ve worked so hard for.

Scalability & Cost Reduction

Your organization isn’t made up of just numbers. It’s a dynamic, evolving organism with changing needs and requirements, and you need modern solutions that can keep up with it. Enter the hosted software model, which can scale infrastructure resources and help you be prepared for all the challenges that the market throws at you.

For example, if your organization grows and you need higher server performance, you can do that. You can deploy a new application, increase storage capacity, and handle all your growing needs efficiently. Ultimately, this can lead to considerable cost savings. According to a Flexera survey, 64% of organizations chose cloud solutions because they could benefit from superior quality services at a much lower cost.

Final Thoughts

As you can see, the hosted software model can help you save money, adapt to growing business requirements, access data remotely and safely back up your data. There are many types of software hosting, so if you need help choosing the right one for you or understanding the difference between hosted software vs. SaaS, a specialized company can suggest the best choice.

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