If you and your company is involved in any sales-related activities, so you will know how much information there is to keep track of when it comes to your customers and your relationships with your customers. To meet the requirements of client services professionals, there are two types of customer relationship management (CRM) servers available.
Twelve years ago, on-premise CRM represented the majority of the CRM market. According to a Software Advice study, 88% of CRM purchasers chosen on-premise solutions in 2008. But in short period between 2008 and 2014, use of cloud-based CRM jumped from 12% to 87%, and the trend is showing no signs of slowing down. The market has developed similarly, with most industry-leading CRM providers offering cloud-based CRM solutions, and many not offering on-premise software at all. Cloud-based and on-premise CRM systems are offering different hosting models with different capabilities. Understanding the advantages and disadvantages of each needs a rougher analysis, and is critical to determining which model is best for your business with out partner, Click here libertyinkandtoner.
Cloud-based CRM operates on a software as a service (SaaS) model, which means you do not purchase the software directly, but instead as a subscription service that typically includes updates, fixes, and support in addition to the CRM software and user licenses. With cloud-based CRM, you or a service partner configure the CRM system, and then the software and your data are hosted on remote servers managed by your SaaS provider and accessible via an Internet connection.
Companies that identify the wide benefits of cloud CRM are leaving the old model of using a network of onsite hardware and software systems to store customer data. Even though on-premise CRM systems offer more control over customization, the amount of resources necessary to maintain the infrastructure is a drain that many companies can’t afford. Small companies in specific don’t have the money or staff to dedicate to monitoring, troubleshooting and updating an on-premise CRM platform.
Cloud-based CRM is the best choice for small and medium-sized businesses without the existing infrastructure, personnel and up-front spending power to build and run both CRM software and dedicated internal servers. It is also the more flexible option for businesses anticipating significant growth or changes over the life of their CRM.
- Cloud-based CRM saves you the operating costs and responsibilities of running your own dedicated server. It is also more energy-efficient overall.
- For most companies, cloud-based CRM offers more uptime, and shorter, less disruptive downtime.
- Off-site hosting significantly decreases your up-front infrastructure costs. There is no need to purchase additional hardware or software before getting started, and there is no need to pay in-house developers to build and maintain the system and/or servers.
- Using the cloud makes your system and data more accessible to your team across large distances, and typically offers easier mobile access to CRM.
- Updates and maintenance are the responsibility of your SaaS provider. Your system stays current, which means less depreciation across the life of your CRM.
- Cloud-based systems scale comparatively easily as your needs change. They are quicker, easier, and cheaper to customize.
- The set-up time for cloud-based CRM is significantly shorter, especially for companies that do not already run their own servers.
- You don’t always get to decide when and whether to upgrade. Don’t like that new feature? Too bad; it’s yours.
- Downtime, while minimal, is out of your control.
Because you are less likely to have dedicated CRM IT and maintenance staff, you may need your vendor or service partner to fix issues that would otherwise be routine.
- You don’t have complete visibility and control over your data. Realistically, the security risks of cloud-bases systems are very similar to those of on-premise systems. However, the regulatory laws your company operates under may make third-party hosting a deal breaker.
On-premise CRM is often the best choice for large scale business units with the infrastructure, personnel, and up-front spending power to run internal servers and maintain CRM software. On-premise CRM is installed and run on your own servers. You purchase the software and user licenses up front, and you host the system database. With on-premise CRM, the bulk of the cost is up front, and updates and maintenance responsibilities fall mostly on you. But you are in direct control of your system and data. It is also the better option for businesses with legal or operational constraints that require full, on-site control over CRM data and high-level offline capabilities..
- You have complete visibility and control over your security, setup, and data. You also have much more control over where users can access CRM. Depending on the regulatory laws your company operates under, this may be extremely important.
- On-premise CRM allows you to take advantage of existing infrastructure and dedicated IT staff. If you run into performance issues, you can sometimes fix them with more people or more hardware rather than updating or changing the system itself.
- Buying, running, and maintaining your own system can be more cost-effective for companies with large numbers of users. SaaS systems charge per user per month. This is a cost-effective model for smaller companies, but very large companies may find the SaaS model costs more in the long run than building and running their own dedicated server and system.
- Most on-premise systems offer greater offline functionality than cloud-based systems, and all reduce reliance on your ISP. If your CRM is in the cloud and your Internet connection fails, then your CRM just did, too.
- You choose when and whether to update, upgrade, or customize. You can continue to use a system that your users know and love long after a cloud-based system would have automatically updated.
- Maintenance requires additional time, money, and personnel expenditures.
- Costs are front-loaded, which can create a sizeable barrier to entry.
- Unless you keep pumping time and money into development and upgrades, your system won’t grow with your company, and you are likely to see higher depreciation over the life of your CRM system.
- The system is only accessible while your servers are running.
- Development, deployment, and upgrades are expensive and often time-consuming