Hosted Application, Works for me.
I was telling one of my friends how our company is basically all online. Our accounting is hosted, payroll is hosted, email is hosted, documents are hosted, so even if all of our laptops all burnt down on the same day, our business goes on as usual (Mostly).
So his first reaction is that I should be worried that our internal data is in someone else's server. My answer to that is we don't have super secrete, plus I really trust all these companies.
The true answer is that I think by having everything hosted, it saves me money, a lot of money. If I need to store all my important data locally, I need to invest in good servers, good backup solutions, and perhaps having an IT department.
Now the cost of having everything hosted, plus online backup for every machine we have, it way way less than hiring even just one person to manage all the data. It just works for me.