1.Overworked. Your IT staff is overworked and you are still operating on a limited budged. By moving some third-party applications to a hosting provider, you will free up staff to finish the projects that have been backing up. Application Service Providers (ASP) is becoming more and more popular for many third-party products.
2. Transfer of Knowledge. With some applications, there is such a huge transfer of knowledge that maintaining it cost more money than offloading it to a third-party provider. In many situations, companies have spent additional capital on training and consulting to maintain a system that requires expert knowledge.
3. Equipment and Leasing Costs. When you host applications, you also save in purchasing or leasing the equipment to run third-party applications. This could cost thousands of dollars.
4. Security. By hosting your applications, the service provider is responsible for securing the servers by making sure everything is locked down tight. They are also responsible for all patches to keep the system secure from viruses and worms.
5. Staff. If you have an overworked staff, hosting applications alleviates the strain placed on the IT staff allowing them room to breathe and avoid burnout.
6. Redundancy. The service provider is also responsible for backing up the applications in the event of a disaster which also saves in equipment costs and gives you an extra feeling of security knowing your applications are being backed up.