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A Hosted Application is an application whose data and files are stored on a third-party server, and is accessible to you and your employees through a web browser. As an example, Quickbooks is an "application," or more specifically, a "desktop application" that is loaded onto your computer. The files and data are stored on your computer. In contrast, a "hosted application" is like Quickbooks Online, where Intuit stores the data and files on their server and make them available to you and your employees via the internet through your web browser (Internet Explorer, Firefox, etc).
Which is better? It depends. Certainly, hosted web applications have advantages over traditional desktop applications, but they are not a great fit in many situations. Generally, if you need to have users running the application from outside of your office, or you need to allow vendors or customers access, a hosted web application may make sense. The good news is that there are many Open Source (free to use) applications that may be a good fit. If so, the cost to set it up is minimal. If no existing Open Source applications fit your needs, we can help build a custom web application for your company.
If you need help figuring out if your company would benefit from moving some of its desktop applications to hosted web applications, we can help you figure it all out.