This is a mode of software provision which sees an application (such as payroll or accounting software) installed on an off-location server, delivered to the organization via an internet connection. 

This differs from a cloud service (such as SaaS) in that the software is a ‘unique’ instance on a dedicated server – it needs to be upgraded and maintained individually from other organizations using the same program. The server owners provide IT support and maintenance. The hosted delivery model is a great asset for the human resources professionals within organizations because it saves time and also allows employees to have their own access to their profile.