hosted service
A Hosted Service provider owns data-centre space (with power and cooling) and infrastructure (servers, storage, networking) and effectively rents their use out for its customers. An alternative is for the hoster to provide data-centre space, power and cooling - and for the customer to simply locate their own infrastructure there. This is called co-location. With both options, the hoster may also provide services to manage and operate the infrastructure.
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Wikipedia: hosted service
2DeCipher: hosted service

