Entities offering access to software applications over a network, typically the internet, represent a specific business model. These entities manage the infrastructure, software, and support required to deliver applications to their clients. Clients, in turn, access these applications on a subscription or usage-based model, eliminating the need for local installation and maintenance. For example, a business might use a hosted customer relationship management (CRM) system accessed through a web browser, managed entirely by a third-party organization.
This approach offers several advantages, including reduced upfront costs, simplified IT management, and scalability. Businesses benefit from access to enterprise-level software without the significant capital investment typically associated with on-premise solutions. Furthermore, the responsibility for upgrades, security patches, and infrastructure maintenance shifts to the provider, freeing up internal resources. Historically, this model emerged as a response to the complexity and cost of managing software applications in-house.
