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Visual Studio 2012 - hosting options and deployment on Office 365

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I have read alot about SP 2013 hosting options and thought I understood them.  My understanding is that theprovider and autohosted options are for cloud-based solutions like Office 365 Developer site and that "SharePoint hosted" is only for on-premises. 

So I was surprised when I was able to create a "Sharepoint Hosted"  app project in VS 2012 and deploy it to my Office 365 Developer site.   My question is - why did this "SharePoint hosted" project deploy and work in Office 365?

Thanks in advance

 




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