A hosted system runs its management software, and often its recording, in the vendor cloud rather than on a server in the building. Users reach it through a browser or app, which simplifies remote access, patching and multi-site administration, but it makes the site dependent on internet capacity.
Hosted and on-premise are deployment models, not quality tiers. The right one follows from who administers the system and how much footage may leave the building.
What moves to the cloud
Typically the user directory, permissions, health monitoring and alerting move. Video storage may stay local, be uploaded continuously, or be uploaded only for selected events.
Questions to settle first
Confirm retention, export method, what happens when the internet fails, who holds the encryption keys and how the contract ends with your data intact.
Related:Commercial securityGlossary: Video management system