What is Outsourced Hosting?
When software you need to run for your business is accessed via the internet (or some other connection). The software itself does not reside in the company offices. It resides elsewhere and is hosted on equipment that belongs to someone else. You are just using it - or renting the use of the software - for a fee.
How does it work?
You connect via the internet and log into a secure area that consists of your business systems. For example if you are "Smith Magazines" you would get on your computer, go to the hosting site, such as (fictional: for example only) www . AnyHostingSystem . com/ and login as John.Worker@SmithMagazines (fictional; for example only). At that point all the applications you are renting for your business would be available to you!
No fuss, no muss! You have no software to buy, maintain and upgrade. You have no technical staff to purchase, install and maintain hardware and software. It is affordable, simple and can be accessed from anywhere!
What are the benefits?
No expensive hardware, software, security and other technical issues to manage.
No special staffing, technical skills or space required.
Many more behind the scenes challenges and issues are taken care of by "experts".
You are free to focus on the business, not on the technologies.
Freedom & Flexibility
One very important benefit is the freedom and the flexibility this provides to busy executives and internal staff.
Imagine, you are running your business, Smith Magazines, and need to take a trip out of town (or, maybe go on vacation). You left town and suddenly realized that you had forgotten (or did not have time) to get on the system in the office and "approve" Accounts Payable invoices and authorize checks to be written in tomorrow's check run. When you arrive at your destination, you simply log into the network (from your PC in your room or from the PC's in the hotel's Business Center) and begin approving payments. Simple. Easy. If these were "traditional" applications, you may not be able to do this until you returned to the office.
You know. You've been there!
This provides complete mobility and flexibility....and NO responsibility for how it works, what needs to be fixed or if you can afford IT staffing!!
Let's Throw In Just 1 Technical Term: SaaS
This type of "rented" software is called Software As A Service or SaaS.
It is now becoming more prolific and more mainstream in both large and small companies. But it is the smaller and mid-size companies who will benefit the most since they cannot really afford to hire a team of varying technical skills to manage and maintain systems of this nature!
Think about it!
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