What is a Hosted Application?
A hosted application is a software solution that runs on a remote cloud-based infrastructure rather than on an on-premises server. Businesses increasingly rely on hosted applications to reduce hardware costs, maintenance expenses, and IT burdens. In fact, companies that switch to cloud-based solutions can cut IT costs by up to 30%. With hosted application services, businesses no longer need to worry about maintaining physical servers, upgrading hardware, or handling on-site security.
Key Takeaways:
- Hosted applications are cloud-based solutions that reduce IT costs and maintenance efforts.
- Unlike SaaS, hosted applications provide greater control and customization.
- 1Wire offers a hybrid approach, combining UCaaS (SaaS) with hosted VoIP for enhanced business communications.
- Businesses benefit from hosted services like UCaaS, VoIP, and email cybersecurity.
- Cloud-hosted applications improve security, scalability, and remote accessibility.
- Application hosting services eliminate hardware investments and ongoing maintenance costs.
What Does Hosted Application Mean Compared to SaaS?
Many people confuse hosted applications with Software-as-a-Service (SaaS), but there’s a key difference. SaaS applications are fully managed by the service provider, with no dedicated instance for each client, whereas hosted applications are unique to the business, often running on private cloud servers or dedicated environments. In simpler terms, SaaS is like renting an apartment in a high-rise building, while hosted programs are like leasing an entire house—giving businesses more control over security and customization.
Where Does 1Wire Fit In?
1Wire offers solutions that blend both SaaS and hosted applications. For example, UCaaS (Unified Communications as a Service) is a SaaS solution that integrates multiple communication tools such as messaging, video conferencing, and file sharing. On the other hand, VoIP (Voice over Internet Protocol) is a hosted application that delivers voice communication over the internet, replacing traditional phone systems.
When combined, UCaaS and hosted VoIP create a powerful, flexible, and cost-effective communication platform. UCaaS enhances hosted voice services with additional features such as:
- Centralized control panels for easy management.
- Detailed reporting on call metrics and user activity.
- Chat and file sharing for seamless collaboration.
- Call control features like voicemail-to-email, auto-attendants, and call forwarding.
- Integration with SaaS-based CRMs and business applications to enhance workflow automation.
This hybrid approach ensures businesses benefit from both the reliability and control of hosted applications and the scalability and flexibility of SaaS solutions.

SaaS vs Hosted: The User Experience
The choice between SaaS and hosted applications depends on business needs:
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SaaS: Easier setup, lower upfront costs, multi-tenant environment.
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Hosted: Greater control, enhanced security, dedicated resources.
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Hybrid (1Wire Approach): Best of both worlds—secure, feature-rich, and cost-effective.
With cloud-hosted applications, businesses can access their tools anywhere, enabling flexibility and remote collaboration. Unlike on-premises software, these hosting applications don’t require extensive internal IT resources to manage updates, security patches, or backups.

Hosted Application Examples
Businesses across industries use hosted applications for seamless communication, security, and IT management. Popular examples include:
- UCaaS (Unified Communications as a Service): Cloud-based phone systems, video conferencing, and messaging.
- VoIP (Voice over Internet Protocol): Internet-based telephony eliminating the need for traditional landlines.
- Managed Firewalls: Cloud-based security solutions to protect networks from cyber threats.
- Email Cybersecurity: Hosted security services filtering out phishing attempts, malware, and spam.
- Cloud Storage & Backup: Secure data storage and recovery solutions without physical servers.

What is Hosted Services?
Hosted services refer to IT solutions that are provided remotely via cloud-based infrastructure. The hosted service definition encompasses web hosting, application hosting, data storage, and security solutions, among others. Essentially, these services eliminate the need for businesses to own and maintain their own hardware.
At 1Wire, we provide a variety of hosted services to streamline business operations, enhance security, and improve communication. Our Email Security Solutions protect businesses from phishing attacks, malware, and spam, ensuring safe and efficient email communications. Additionally, our Unified Communications (UCaaS) platform integrates voice, messaging, video, and file sharing into a single cloud-based system, reducing costs while improving productivity. These services not only enhance reliability but also provide scalability, allowing businesses to grow without worrying about infrastructure constraints.

Benefits of a Hosted Application
Switching to hosted applications offers several advantages:
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Lower IT Costs: No need for expensive hardware, software licenses, or on-site maintenance.
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Scalability: Easily scale resources up or down based on business needs.
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Security: Cloud-based security features, including firewalls, encryption, and automated backups.
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Remote Access: Employees can securely access applications from anywhere, promoting productivity.
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Automatic Updates: Providers handle updates, ensuring that businesses always have the latest features and security patches.
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Disaster Recovery: Cloud solutions provide backup and recovery options to minimize downtime.

Is Application Hosting Right for Your Business?
If your business is looking to cut costs, improve security, and enhance productivity, then investing in application hosting services is a smart move. Whether you need cloud-hosted applications for communication, security, or storage, hosted solutions help modern businesses stay agile without the burden of maintaining physical infrastructure.
Let’s Get Your Business Communications Done Right from the Start
With cloud-hosted applications, you get the flexibility to scale without the burden of managing physical infrastructure. The right cloud-based setup ensures seamless communication, enhanced security, and efficient collaboration—all while cutting costs. We’re here to help you build a future-proof IT strategy that evolves with your business needs.
FAQs
What are hosted applications?
Hosted applications are software solutions running on remote cloud servers instead of on-premises infrastructure, offering businesses flexibility and cost savings.
What is a hosted app?
A hosted app is a software program hosted on a cloud server and accessed via the internet, removing the need for local installation.
What is application hosting?
Application hosting refers to deploying software on cloud-based servers, ensuring accessibility, security, and automatic updates.
How do cloud-hosted applications reduce expenses?
By eliminating the need for physical servers, IT maintenance, and on-site upgrades, cloud-hosted applications significantly lower operational costs.
What is the difference between hosted and SaaS applications?
While SaaS is a multi-tenant, fully managed service, hosted applications provide dedicated environments for better security and customization. 1Wire bridges both worlds by offering UCaaS (SaaS) alongside Hosted VoIP solutions.