Thanks for everybody's answers, but as stated in my previous e-mail where its
hosted is not negotiable.
Who is it "not negotiable" for?
If the client is the one demanding this, that should be a huge warning flag for you.
I realize you already said that this wasn't negotiable, but the reason people keep asking is because if "controlling" that software is the top priority, a hosted solution is the only thing that will really allow it.
Note that there are other reasons to opt for hosting. The primary one is cost. Assuming that a motivating factor for protecting your software is to prevent lost revenue (which is usually the case), packaged software entails much more overhead by way of support and service, the need for user documentation, and the difficulty of providing updates and troubleshooting problems that arise. Not to mention the need to build and maintain a key distribution system to monitor for unlicensed copies (if you're doing site licensing). These costs usually far outweigh the potential loss of revenue that results from hacking, especially on custom contract apps, since not many people will even know about the app. (Is it a contract job? Because if so you'll often be able to charge for time spent in support. That's probably not the case if you chose to distribute the app encrypted; the burden will more often be on you to fix problems.)
I realize that's all irrelevant if this is truly not negotiable, and that you weren't asking for this kind of input. Just sharing some lessons learned from trying to do what you're doing. It's a PITA that you'd better have the time to build and support. Pardon the unsolicited input. :-)
- Dan
