CRM hosting involves the active hosting of a CRM application for the client (usually small, medium businesses) on their servers as opposed to the client hosting their own solutions.

CRM Software providers arguably prefer offering clients hosted CRM solutions because it provides them with on-going income from their clients aswell as a continuing relationship with the client which may result in bigger deals being done with the client in the future, when they outgrow their hosted crm solution.

Many big CRM software providers are fiercly competing for CRM clients by offering competitive pricing and innovative features on their CRM software applications.