A research carried out by a UK based broadband supplier, showed nearly two thirds of small businesses (those employing 1-10 people) do not use the internet at all. Most of them had no company website in place. Even those companies that have an internet connection use a very low speed dial up network. This scenario indicates that the possibility of growth in IT and internet penetration is huge.



When 61% of households have internet penetration, why is it very rarely used in the business applications? Answers for the same can be found in the complexity of businesses and greater bandwidth. Also, most of the business owners operating at lower levels hardly have enough knowledge on the internet, computers and so on. So, under what environment does hosted software operate? To understand this question we need to know the meaning of it. For smaller companies, IT systems may mean a computer and little software installed in them. However, in larger companies it may include servers; to which many computers and other programs are interconnected.

Contrary, a hosted system incorporates a number of software supplied by the company and which are accessible by many via internet connection. The initial cost of using this software is relatively cheaper. There are many benefits of using hosted systems. Some of them are:

1) Cost is very low

2) Most of the hosted system suppliers are well equipped with multiple servers planted at multiple locations. Hence, they offer better availability

3) They provide back up facilities to all your data automatically.

4) There is no need to invest in buying other software or programs

5) They are active and gets updated regularly

6) Their services are far reliable as compared to traditional systems

7) They are readily available as they are internet based. They can be accessed form any part of the world at any time.

Typical office software like Word Processors and Spreadsheets can be downloaded from Google; which has committed itself into hosted software market. CRM systems are also available for businesses intending to develop customer base and prospects in the medium term. Intranets, which were previously used by larger companies, are now being used by smaller companies too. Other applications of hosted programs include websites and in particular e-commerce websites. Hosted systems are a lot cheaper and are readily accessible.

Some examples of hosted solutions include iPages, Intranet Works and so on. The former solution provides not only shop and shopping basket but also back office to help the businesses grown big in the ever changing world of internet shopping. The latter solution helps smaller and bigger companies with intranet services options.

Conducting an online shopping business is not an easy task. A lot of cost has to be incurred in maintaining warehouses, designing a website and for staffing purposes. Not everybody can master this trade. An effective ecommerce website can incorporate all the necessary features to make it click. The process kick starts with the customer entering the details online. Thereafter, stock is checked via back office and is picked for shipment. There's no doubt that hosted software is here to stay. Both companies; bigger and smaller ones can make use of them effectively to their advantage.