The service provider will provide the operating system, and the database software sitting on top of it, as well as a web server. The customer will provide their own applications. The customer will, once again, be charged on the basis of resource usage. The service provider is responsible for ensuring that the operating system and other parts of the platform are correctly licensed (and the license fees, if any, will be covered by the usage charge). The customer is responsible for ensuring correct licensing for the application it chooses to use.