Technology Focus Part 1 To Host or Not To Host?

Consider the term "hosted" as a neutral description of systems managed by the vendor on servers under the vendor's control (typically at a secure off-site location), and consider it, simplistically, as interchangable with SaaS.

Payment Objections

Before reviewing the pros and cons of this arrangement, let's cut to the chase. The biggest objection catalog/e-commerce marketers have to hosted solutions is that they're essentially paying for the system according to order volume (or alternatively on a periodic fee basis, albeit derived from volume). It's like riding in a taxi as opposed to renting, leasing or buying a car (whether you pay by the mile/minute, or on a fixed fee basis to the airport).