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Why is “hosted” model is cheaper compared to “on-premise”?

April 26, 2017cheaper model

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Why is “hosted” model is cheaper compared to “on-premise”?

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In a “hosted” model, we have already arranged the facilities for deployment and support work. It becomes easy and cheap for us to maintain the application. But in “on-premise” model, we would have limited access and hence it would be more difficult for us to work with.