Honestly, I have no particular horse in the race when it comes to hosted vs. premise-based solutions. My recommendation of one over the other would come from evaluating the business need and making a decision based on that. But there seems to be a bias for this model as evidenced by pro-hosting articles and research like this one that only refer to the hosted option, and repeat, ad nauseam, the same old benefits: lowered up-front cost and minimized system maintenance.
Now, those benefits are nothing to sneeze at, but to say the hosted option always costs less to start-up is not necessarily true. Hosting can be a more expensive option!
I think it was in the movie Fight Club that actor Edward Norton said, "On a long enough time line, the survival rate for everyone drops to zero." Similarly, given enough time (a year, maybe two) hosted options exceed the cost of premise-based solutions. Well, not always - but it does happen!
So let me reiterate. I'm not against hosting. I'm for it, when the business need determines it. But to not even mention premise solutions in such an article, I think demonstrates a bias towards one method over the other.
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