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Hosted applications are nothing new. Application Service Providers (ASPs) made their meteoric rise (and crashing fall) in the late 1990s, as an offshoot of the Internet Boom. The premise was to provide enterprises with the full features and functionalities of applications such as customer relationship management, sales force automation, and supply chain, without the overhead of having to install, manage, and upgrade the solutions. Not everyone bought the idea that you could successfully outsource some of your most business-critical applications, and with the Internet crash of the early 2000s, the ASP market felt the hit.

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