Hosted servers are either Physical servers, or Virtual server that were purchased by a department or group to run specific applications for that department or group. Example, The nursing Department would like to run a Nursing Student application called Best Nurses USA. The Nursing Department would need to obtain funds to Purchase the software and hardware (computer systems) need to run the Application. Once this has been approved and completed, ITS would either create the Virtual Machine in our Server Cluster to be used for the application, or they would ship the physical computer to ITS to have it installed in our Datacenter.