Hosted software differs from typical software in its installation and accessibility. Unlike most software, which is housed on the user's machine, hosted software-related data processing and computing is performed on the remote host server. End users can access this data through a compatible Web browser.
Generally, hosted software is provided as a service to end users, who are billed monthly on pay-per-use or per-license fee billing method. Because all programs are installed at a provider’s location, they are managed, upgraded and patched by the provider, ensuring that users always have access to updated, bug-free versions of the software they use.