Posted by trent -PITA to remotely maintain each individual server at each location.
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It sounds like you're responsible for maintaining it one way or another, so I'd say host it yourself. If you were just handing the product over to their IT teams and only had to deal with fixes and development-type support, it'd be one thing. Sounds like you're going be responsible for backups, monitoring, and all that sort of sys-admin goodness, though, so I'd say host it yourself.