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jlaxmiFlag for India

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What are the limitations with SharePoint 2010 in hosted environment?

We are considering implementing an intranet portal on SharePoint 2010(Enterprise edition) in an externally hosted environment.Could some one please help me with some inputs on

1) What are the limitations if hosting externally?
2) What are be the pros and cons of a fully dedicated environment hosted externally v/s on premises implementation?
3) Is there any known issues with hosted solutions?
4) What are the pros and cons of cloude hosted SharePoint 2010 intranet solutions?
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Thanks to you both for the replies.
I am talking about dedicated environment hosted in cloud.If so how would the integrations work with internally hosted egacy applications?For eg:workday
Will there be security issues?
How is the sso functionality managed if there is internally managed Identity management solution existing