Hosted CRM might confuse people, though. Hosted refers to the fact that the software is delivered as a service — these days across the Internet — but it may not necessarily refer to what we see coming from popular SaaS vendors like Salesforce.com, NetSuite, and RightNow. Hosted simply means someone else is managing the application on a computer that is remote from the user. So, for example, a facilities management (FM) approach satisfies the definition. FM might operate just like your own IT staff but with a longer distance from the user than your computer room. Hosted makes no promises about the applications being delivered in a multi-tenant mode. Generally speaking, you can service more users in a multi-tenant environment than in one that is more traditional and simply separated from the user by a greater distance.
This was first published in June 2007