1. Lower TCO: As you would have come across more suggestions on ERP, selecting the right one is crucial. The term "Hosted Solution" is rapidly catching up, on account of its own benefits. A Web Hosted solution ensures a lower outlay and predictive spread of cost over time. You have a substantial saving in cost (on both the software and hardware, licensing) that can be better invested in your business process.

2. A web hosted solution removes your headache from the investment made towards time and cost in the maintenance of the server & other hardware.

3. A web-hosted solution also removes your worry about the new functions and features (service packs and fixes).

4. When you go in for a web-hosted solution, you can start using it from day one (avoids the worry towards implementation time, which has been cited as one major reason for ERP failure).

5. Optimized performance & Support

6. Most of the hosted applications are like Off-the-shelf software. The application is available to you anywhere and at anytime from a simple browser. Proper installation of print drivers and configuration at the local system can avoid problems in printing of reports.

7. Some hosted solution providers allow you to attach a public site to your business for your customers to access.

8. Access through hand-held devices made easy.

If you're looking for more info on ERP solutions you might want to check out SaaS ERP. They have a pretty nice site that offers reviews and articles on ERP solutions providers.