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Hosting of applications - the inevitable future?

I've been musing over some medium term IT trends lately and one idea that keeps coming back into frame is the seemingly inevitable trend towards hosting of applications. Take Exchange, as just one example...

Hosted Exchange* has been available for years, from lots of different providers all around the world. The basic concept is that instead of buying the software, you just buy the service from a hosting company much like you buy line rental on your phone, or internet access from your ISP. Why not just have your comp





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