Key Differences Between CRM on Premise vs. CRM on Cloud

August 19, 2017

Key Differences Between CRM on Premise vs. CRM on Cloud

Technology prevails in all facets of the working of a business and the difference between CRM on premise vs. CRM on cloud is one aspect which is vital to understand. While initially on premise CRM was the only requisite to pursue these technologies, the focus has now shifted to a cloud based module. Gartner predicts that in the year 2017 the customer relationship management market would reach a whopping $37 billion. If as a small business you are also getting confused over the need to invest in CRM on premise vs. CRM on cloud here we present you the case in favor and against.

Storage and cost

This is the most basic aspect on which you can differentiate between CRM on premise vs. CRM on cloud. On premise, software involves storing all your data in servers stored at your office location hence CRM on premise cost is high. On the other hand, CRM on cloud price is less as it involves storing the information in cloud based servers which can be accessed at any time and from any location.

This provides a major advantage to the cloud solution as you do not have to worry about installing and maintaining heavy servers. CRM for small business requires saving up on any extra costs. This extra expenditure on computers and IT infrastructure is extremely reduced if you opt for a cloud based solution. Contact a reliable customer management software solutions provider to know how best cloud CRM can solve your customer database management problems without being much heavy on the pocket.

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Flexibility between CRM on premise vs. CRM on cloud

CRM on cloud services solution has the ability to be scaled as per your requirement. This means that if there are any anticipated changes in your business requirements, you just need to modify your subscriptions accordingly. Processes between other departments are much more streamlined as the interaction between them becomes much more simple and convenient.

All the data is stored at a central point and is in reach for all the people involved. This reduces conflicts arising due to access rights. The data can be revised as many times letting everyone have the updated version of the software at all times. For a small business, any kind of disruptions in the form of data not being available or not being updated can be a huge loss of time and money. Hence, the need arises to opt for flexible CRM cloud solutions.

Security issues

Cyber security ventures predict that cyber security spending worldwide is going to increase during 2017 to 2021 and reach a mind boggling figure of $1 trillion. On premise, solutions get an advantage here as trying to retrieve data from a cloud service provider can be taxing and leave you exposed to the mercy of other parties.

However, this should not be a big concern if you consult any of the correct CRM software companies to handle this job for you. If you can establish a trustworthy relationship with him then it won’t be tough for you to bounce back in case a security breach happens on your cloud CRM set up. The fact that on premise CRM does get saved from this setback may lead you to give a ruling in its favor. But in the quest to find the difference between CRM on premise vs. CRM on cloud there are a lot of other factors which do put the latter in the lead.

Government regulations

Every government has a set of regulations with regards to the way your data should be stored. With CRM on Premise services data, it is not so easy to manage the fulfilment of such regulations. Healthcare and financial services are examples of sectors where you cannot compromise on the security of the data. Hence if you are in any of those, you would consider on premise as the preferred mode of data storage.

Another factor that works in favour of premise is that it is difficult to trace and find out where the data is stored in case of cloud storage. But if you are able to trust your outsource CRM software company than these issues are secondary as the scope of growth possibilities with cloud CRM is much higher. Understanding which to select, from amongst CRM on premise VS CRM on the cloud, depends upon the future prospects arising from the usage of any one of them.

CRM on premise vs. CRM on cloud

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Ease of usage

When we talk about the convenience of using CRM on cloud software solution, it is easier to use as you can even access your files remotely without any worries. With the majority of work processes being completed 24*7, having a cloud based CRM system lets you handle all your data at any time and place. For a business which is just starting to make its presence felt, having a cloud based solution is cheaper, convenient and easy to implement.

If you have an internet connection, the possibility of accessing your client management software is not something to be worried about. However, it is important that you hire the services of a CRM service provider to help you handle the same processes.


Both CRM on premise VS CRM on cloud have their own share of pros and cons. While on premises system had been a preferred method till a few years back, it has slowly now made way for cloud CRM. However, no decision about which one method to choose should be done rashly. It is wise to weigh all the positive and negative aspect of both to finally find out the method which would suit your requirement the most.

Consult a CRM service provider who can make you understand the implications of handling your customer database software through any of these methods.  A hybrid solution involving the best facets of both of them can also be the method that you are looking for. Try to discuss this with your service provider to know how to make your CRM work in the best manner for you.




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August 19, 2017

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