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Application hosting is one of the most coveted businesses among web hosting solutions. It is mainly a service offered by several companies to the business houses. This comes in handy to those business organizations, which prefers not to keep any in house server for providing computer based services. They are either unable or unwilling to keep a department for looking after the servers and the computer based programs. This helps them to have the services of application hosting without actually having to put any kind of effort for that. With application hosting having gained good ground as a profitable business in the information and technology world, more and more companies are approaching the business with new hopes.

There are various advantages of application hosting. These are drawing more and more businessmen towards this business of providing Application Services. The delivery of the information in ASP or Application Service Provider is quite flexible. It also spares the companies of the immediate cost of installing software for managing the application.

There are also a few limitations of using the Application hosting. This type of web hosting is different from Grid Hosting and has problems with customization. It also has security risks associated with it. Hence, it is not always opted for by the different companies, which look for application hosting from some other companies providing the service. The application hosting has also been able to popularize the process of dedicated hosting of late. This form of hosting is being taken up by more and more companies with every passing day.