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Hosted application delivery means giving users access to software that runs in an environment operated by a provider, usually over a network. The phrase describes where software runs and how users reach it; it does not, by itself, say which party manages every layer. SaaS, cloud hosting, and virtual application delivery are related but distinct models, so naming the specific model makes responsibilities clearer.
What does hosted application delivery mean?
An application is hosted when it runs on systems managed in a provider-operated environment rather than solely on each user’s device. Users connect to that centrally run software over a network. The arrangement can range from a provider operating the complete application to an organization running its own application on rented cloud infrastructure.
“Hosted application delivery” is a broad description, not one uniquely standardized service model. To understand what a particular service includes, identify its model and check who operates the application, platform, infrastructure, and data-handling processes.
How hosted delivery models differ
The central difference is the boundary between provider and customer responsibilities. The terms below describe common arrangements; actual duties depend on the product, implementation, and contract.
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| Model | Provider commonly manages or supplies | Customer commonly manages | Typical access or use |
|---|---|---|---|
| SaaS | The application software and supporting stack | Configuration, users, data governance, and integrations, as specified by the product and contract | Users access the centrally hosted application, often in a browser |
| PaaS | Infrastructure and the development platform, including runtime tools and middleware | Application code, applications, and data | Developers build and deploy applications using an online platform |
| IaaS | On-demand infrastructure such as compute, storage, networking, and virtualization | Virtual machines, operating systems, middleware, applications, and data | The customer deploys and operates software on rented infrastructure |
| Cloud hosting | Cloud infrastructure, such as virtual servers and related resources; the degree of management varies | Depending on the arrangement, application and server operations | An application runs on provider cloud infrastructure |
| Virtual application delivery | Centralized application images and a remoting service | Choices such as identity, network integration, and application-image configuration vary by implementation | A native application is delivered to an endpoint over an encrypted remoting connection |
SaaS: the provider runs the application
In software as a service (SaaS), the provider operates the application stack and users connect to the service, commonly through a browser. The customer still has responsibilities: configuration, user access, data governance, and integrations may remain customer tasks. The product’s terms and controls determine the precise division.
Google Cloud describes SaaS as software that is centrally hosted and accessed over the internet through a web browser: Google Cloud’s SaaS overview.
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PaaS and IaaS: customers operate more of the software
Platform as a service (PaaS) provides a development platform as well as infrastructure. The provider operates platform components such as runtime tools and middleware, while the customer builds and manages applications and data. Infrastructure as a service (IaaS) supplies foundational computing resources; customers manage more of the stack above them, including virtual machines, operating systems, middleware, applications, and data. See Google Cloud’s PaaS explanation for the model distinctions.
Cloud hosting: infrastructure location, not one fixed responsibility split
Cloud hosting means running an application on infrastructure provided through a cloud service. It does not automatically mean the provider manages the application itself. A customer may be responsible for operating servers and application software, while other hosting arrangements shift more infrastructure work to the provider. AWS’s cloud hosting overview explains how cloud hosting relates to different hosting models.
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Virtual application delivery: the app runs remotely
With virtual application delivery, applications run on centralized Windows or Linux images and are presented to users through a remoting protocol. The endpoint receives a pixel-based stream over an encrypted channel rather than running the application locally in the usual way. This describes an access method; it is not synonymous with SaaS. AWS outlines this approach in its End User Computing Lens guidance.
How hosted apps compare with installed software
With a locally installed application, the software runs on the user’s device. In a hosted model, it runs in a provider-operated environment and users reach it over a network. Hosted access can reduce the need to procure and maintain local hardware or install and update software on every endpoint, depending on the model. It also makes connectivity and the provider’s availability part of the user experience.
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These are differences in where work happens and who operates parts of the stack—not proof that one approach is always cheaper, safer, or better. Outcomes depend on implementation, service terms, network conditions, and the organization’s needs.
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What to evaluate before choosing a hosted service
Compare the responsibility boundaries and operating conditions, not just the word “hosted” in a product description. Useful questions include:
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- Responsibilities: Who maintains the application, operating system, infrastructure, updates, backups, and recovery process?
- Security and compliance: What controls does the provider offer, how are customer environments isolated, and which party handles each security task? Provider operation does not remove the need to understand the customer’s own duties.
- Data rights and portability: Who owns the data, where is it held, and how can it be exported or deleted when the service ends?
- Identity and integrations: Does the service support the organization’s identity setup and required connections to other systems?
- Connectivity and performance: What network access is required, and will latency or interruptions affect users? SaaS typically depends on internet access; streamed applications also rely on a responsive remoting connection.
- Availability and terms: What availability commitments, support arrangements, and remedies are stated in the service agreement?
- Cost at expected use: How does pricing behave under normal and peak demand? A provider-run service can shift maintenance work, but that alone does not establish lower total cost.
- Endpoint and remoting requirements: For virtual application delivery, what client, network, and remoting setup do users need?
AWS’s guidance on distinguishing SaaS applications from foundational cloud services highlights questions around provider controls, data ownership and export, identity, integrations, and service communications.
Benefits and trade-offs
What hosted delivery can make easier
- It can reduce local hardware procurement and maintenance when users rely on centrally operated software.
- Providers may handle software updates and platform operations, depending on the model and service agreement.
- Cloud resources can be adjusted to demand, subject to the service’s design and pricing.
What it makes an organization depend on
- Some control over operations, availability, security, and data handling shifts to the provider.
- Network quality and provider outages can interrupt access or affect performance.
- Data export, identity support, integrations, and service-level commitments need to be confirmed rather than assumed.
For SaaS, the provider’s operation of the application stack does not mean the customer has no security or governance responsibilities. Microsoft’s SaaS workloads guidance addresses considerations such as multitenancy, isolation, security, and compliance.
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