There are mainly two hosting models which are “SharePoint Hosted” and “Cloud Hosted”. Cloud hosted model is subdivided into two models as “Provider Hosted” and “Auto-hosted.”
Provider hosted apps
Auto hosted apps
Advantages of Auto hosted

SharePoint hosted Apps
- Contains only client side code and resources such as web pages and JavaScript’s etc.
- Severed up entirely by SharePoint environment
Cloud hosted App hosting
- As mentioned, there are two variations in this those are provider-hosted and auto-hosted
- Both types has associated “remote web” which host app-start page and required resources
- Capable of hosting custom database to store app specific data
Provider hosted apps
- Provider hosted apps with multi-tenancy creates complexity
- This separates app data from tenancy, so that user in an one tenancy cant access data in a separate tenancy (which is good for policies)
- Comparatively more cost and time to develop apps in provider hosted apps
Auto hosted apps
- No involvement with scalability and data isolation which was there in the provider hosted development (No worries ☺)
- Only supported in O365(online cloud), but no idea whether this will introduced to On-premise apps
- O365 provided SharePoint where Windows Azure hosts “remote web” and provides SQL Azure database on demand
Advantages of Auto hosted
- Lowe development cost compared to provider hosted apps
- Less complex
- Data isolation
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