A native or hosted compiler is one whose output is intended to directly run on the same type of computer and operating system that the compiler itself runs on. The output of a cross compiler is designed to run on a different platform. Cross compilers are often used when developing software for embedded systems that are not intended to support a software development environment.

Because a compiler translates source code into a specific machine language, programs have to be specifically compiled for OS X, Windows or Linux, as well as specifically for 32-bit or 64-bit architectures. For a programmer or software company trying to get a product out to the widest possible audience, this means maintaining multiple versions of the source code for the same application. This results in more time spent on source code maintenance and extra trouble when updates are released.

While being locked into a specific hardware package has its downsides, compiling a program can also increase its performance. Users can send specific options to compilers regarding the details of the hardware the program will be running on. This allows the compiler to create machine language code that makes the most efficient use of the specified hardware, as opposed to more generic code. This also allows advanced users to optimize a program's performance on their computers.