A hosted application is an online application which can be accessed through the internet. Its application software resides on servers. A hosted application is also known as web-based application or internet-based application. Hosted applications are one of the forerunner service models of cloud services. Hosted applications are one of the pioneer service models of various cloud services. End-users, through their web browsers, get the application functionality experience similar to a desktop application within a hosted application. Hosted applications are easily deployable, as they don’t require any upfront installation and integration requirements. Various services available as a part of hosting packages include load balancing and disaster recovery. Security processes are also included as a part of hosting packages, which include intrusion detection, distributed denial of service (DDoS) mitigation and prevention, and vulnerability scans.

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A hosted service provider oversees and owns infrastructure, administrative, and software tasks and makes the system available to customers. Currently, businesses are outsourcing these cloud hosting services for end-to-end solutions, which have become an essential part of business operations. In a hosted application, there is no need to worry about patch releases, software upgrades, etc. The responsibility is assumed to be on the service provider side in a hosted model arrangement. Currently, integration of application is trending globally, as people are preferring integrated application due to improved functionality. End-users are expected to focus on cutting costs, as in-house management of ERP applications proves to be expensive.

Cloud-hosted applications have numerous benefits such as ease of use, ease of access, reduced physical clutter, cost savings, and reliability, which are driving the hosted application management (HAM) services market. These applications pose a low risk of local system corruption, as they are accessible through a web browser, which in turn is also driving the hosted application management services market. However, as a cloud host essentially gets access to data within businesses, companies may not be able to offer support immediately when businesses need to contact the company if an issue crops up. Hence, the businesses incur less control over their business operations. This factor is hampering the hosted application management services market. Businesses can seamlessly downscale or upscale their cloud resources due to hosted application management services. This is expected to create growth opportunities for the hosted application management services market. Moreover, application management outsourcing is estimated to increase due to greater agility, cost savings, improved system performance, and reduced risks.

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The global hosted application management services market is segmented based on service model, scope of web hosting services, and region. In terms of service model, the market can be segmented into software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS) model. In terms of scope of web hosting services, the market is classified into smaller hosting services (web page & small scale web hosting) and larger hosting services (Large organizations need to be permanently connected to the web). In terms of geography, the market is segmented into North America, Asia Pacific, Middle East & Africa (MEA), South America, and Europe. The market in North America is expected to show sustainable growth in hosted application management services market in the near future due to the increasing adoption of cloud services and the presence of a large number of software companies in the region.