On-premise application software is implemented at an organization’s physical location, leveraging the hardware, IT infrastructure, and support of that organization. The company’s IT department typically maintains and solves problems related to the software. Hosted application software, also called Software As A Service (SaaS), is software that is owned, delivered, and managed remotely via the cloud by a provider separate from the purchasing organization. Many organizations license these programs at the same time, and organizations typically pay per user or via a subscription. One advantage of on-premise software is that it can be customized to the individual company’s needs more easily. However, hosted application software programs generally allow users to scale up more quickly. On PremiseHostedManaged at organization's physical locationDelivered remotelyPay for licensePay per user via subscriptionMore customizableScales more quickly