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Hosted software is also called ASP, which stands for Application Software Provider. You might be used to buying software, getting a CD, and installing it on your computer. With ASP software, it is running on someone else's computers. You log into your account and run the software over the Internet. You are always using the most up-to-date version because someone else is responsible for installing updates. You can work from different locations and different computers because the ASP software is running on a server connected to the Internet.