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Using hosted service you pay not for owning a service and for his rent (use).
The advantages of this scheme: you pay a little money while you do not need to invest huge funds to purchase the finished service, then make regular investments in its maintenance.
If there is no need to use the service, you can stop paying it, thereby temporarily freeze its work.
Hosted service is limited to sending emails with regular mail server up to 10 letters per minute. So you need to set up your own SMTP server.
Bulk of users of hosted service consists of small and medium-sized companies, entrepreneurs who can not afford to purchase expensive service. Even large companies can reduce the cost of the business of advertising.