Hosted services refers to online services that users can use online using online software and network servers that are not their own. The social media tool, Facebook, is an example of a hosted service. The term “services” refers to existing websites that offer these tools and often hosts them on their own servers.
The major concern about hosted services is the security and safety of these services. How safe is the information shared on the net? It is such issues that really bring into question the costs and benefits of web 2.0 tools.