Saw a great article on the question between hosted solutions and licensed solutions. Wanted to pass it on to shoppers!
This article explains the financial difference being that hosted solutions cost more to start up, but cheaper over the long run and licensed solutions are the cheapest to start up but will cost you more per month. I especially found the budget comment interesting as one is an operating expense and the other, a capital expense.
http://www.thornberryltd.com/index.php?pID=105
