Hosting inside the telecom industry is referred as Managed Service Hosting. The telecom industry is meeting the Internet industry by borrowing technologies and ideas used in web. Managed Service Hosting is a kind of new service that is offered by telecom vendors, in which they adopt the concept of Internet hosting and introduce it in the telecommunication industry. The meaning of hosting within the telecoms means simply taking care of varied servers that frequently provide a gamut of services. The concept of hosting was immensely popular in the Internet business, owing to factors such as cost, lack of expertise or just to getting time in focusing on business goals. Most of the service providers merely offer connectivity and space to the set of servers, monitors alarms as well as executes simple administrative activities. The above mentioned features are included in a typical internet hosting deal. Managed service hosting is quiet similar to the managed hosting concept with only few deviations.

Need for Managed Service Hosting:

The telecom industry has gone through a sea change, with more revenues earning from non-voice based services. Facilities such as Multimedia Services (MMS), SMS, mobile TV and content download are increasingly explored and are a great source of revenue. Although not every service has succeeded in capturing the market for instance, mobile ads unified messaging and mobile shopping. The failure can be contributed to the fact that most of them were lauched before the expected time. Virtually, every day and within hours more new services are introducted, it has hence become a difficult task by the operators in selecting the appropriate service for subscribers. Therefore, the need of Managed Service Hosting arises. It helps in reducing the enormous risk that operator tackles, while launching a brand new service. Through managed service hosting, an operator does not require buying the equipment. Simply by paying the fees for software licensing can enable in using the service. The operator can buy ultimate user services based on the Service Level Agreements. The investment made by the operator becomes considerably low and hence, if service results in failure, the agreement can be cancelled.

Advantages of Managed Service Hosting to the Operators:

The benefits of Managed Service Hosting to the Operators are ample namely:

1. It does not require establishing complex infrastructure essential for providing the additional service.
2. The expertise involving the equipments and the huge investments are not essential to be possessed by the telecom operator.
3. Enables Risk Sharing.