Cloud computing technology makes enormous computing processing capacity and software available for an economical price through the help of Internet. By availing services of a cloud computing or cloud hosting service provider, users gets many economic benefits as they have to pay only for the amount of computing resources that they consume.

Before we discuss how Application Hosting helps the SMEs it will be apt to discuss what are the needs of the SMEs and the professionals.  The needs of the SMEs can be described to have the concerns like investment constraints, cost effectiveness, security, efficiency and consistent performance.