Outsourcing CRM Software Service Gives You A Better Understanding: On-Premise CRM vs Cloud CRM

February 18, 2017

Outsourcing CRM Software Service Gives You A Better Understanding: On-Premise CRM vs Cloud CRM

Glad that you are able to recognize the value in CRM (customer resource management) and have decided to invest in a CRM software system for your business.  But you are facing a difficulty in making decision – choosing between an on-premise CRM software solution or going ahead with a cloud version.

image courtesy:https://blog.hubspot.com/sales/benefits-crm-system

When deciding between a cloud vs. on-premise CRM delivery model, it’s important to bear in mind there’s no one-model-fits-all solution. There are advantages and disadvantages to both, and the decision usually involves a compromise. Start by first identifying and assessing your business’s unique CRM requirements. Ask yourself the following questions:

  • Do your business have the financial capacity to invest in new resources such as required infrastructure, software licensing, support, etc.?
  • Do you have technical know-how or a dedicated IT staff?
  • How important it is to maintain confidentiality and control over your corporate information?
  • How do you anticipate your business growing and changing over time?
  • How much flexibility do you require?

Basics Of Cloud CRM Software And On-premise CRM Software

In a cloud or hosted CRM delivery model, your vendor houses the application and you access your data via the web. Alternately, on-premise CRM software is installed on your own servers and controlled and maintained in-house. But which is the best option for your business?

In order to understand  which CRM Solution will be the best for your business, below are few important questions that helps you to figure out:

  • Does your company have required IT support to administrate an on-premise CRM?
  • What about your security requirements, both of your accessibility and of the data itself?
  • Does the cost per head method calculate works in your favor?
  • Do you want to integrate your CRM with other enterprise solutions?

On-Premise Vs Cloud CRM Solutions Compared


image source:http://www.preact.co.uk

On-Premise Cloud

For organizations that want to utilize existing IT infrastructure or fully control the CRM database from their own servers, including its upgrade cadence

Retaining complete control of data is one reason why businesses choose an on premise installed CRM solution over cloud CRM. This is especially important to organizations with sensitive client data including legal and financial businesses.

In comparison to the recurring monthly cost of cloud CRM, businesses that have already invested in an IT infrastructure may calculate that an on-premise package which creates a lower total cost of ownership over longer term.

Benefits To Choose On Premise CRM

  • Utilizing existing IT investments
  • Retaining ownership of customer data including CRM upgrade
  • Decreased immediately increased monthly costs if there is increase in CRM license 
  • Utilizing in house personnel or outsourced IT resources who will manage CRM
  • Less susceptible to potential external connectivity issues
  • The software runs on your own hardware and is managed internally.
  • Greater control over data processes and confidential information.
  • Dedicated IT staff for system support.
  • Flexibility to determine when you want to upgrade your system.

Cloud CRM

Your secure data resides in cloud with CRM as a service with lower up front expense. Unlike an on-premise application a Cloud CRM solution isn’t purchased outright or owned by you. Rather like renting you don’t pay an upfront cost to purchase but instead pay a monthly subscription to use the service. This will also include all CRM upgrades and service updates.

Benefits To Choose Cloud CRM

  • Removes the overhead of purchasing and maintaining a dedicated CRM server
  • Lower upfront expense as it avoids software license costs
  • Enables CRM to be deployed quicker compared to an on-premise implementation
  • Only pay for what you use; increase and reduce subscriptions when needed
  • No new hardware or IT infrastructure required.
  • Low monthly cost for services
  • Easy set-up.

After considering both cloud vs. on-premise CRM options, with the above mentioned pros and cons of both you can see why it is important to evaluate your unique business needs. However; the cost is an obvious consideration, it’s essential to look beyond cost at what makes the most sense for your business. 

Closing Thoughts

Want the most amount of flexibility? Since there are pros and cons to both CRM delivery models, in many cases it’s advantageous to consider a vendor that offers both a hosted and on-premise software solution. That way you can easily switch from a hosted to an on-premise CRM platform as your needs evolve and change over time.



Image courtesy:Business in Vancouver
February 18, 2017

Connect with Service Provider

Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities

Latest Posts

Top 7 Whiteboard Explainer Video Tips That Talks About Your Business

December 01, 2018

Whiteboard animation videos !! The video style has been trending for obvious reasons. The whiteboard animated videos are known for boosting

Read More  
Facebook Ads | Top 6 Reasons Why Your FB Ads Are Not Converting

November 29, 2018

There were only 3 million active users on Facebook 4 years before; and as of 2018 there are more than

Read More  
Top Facebook Boost Post Tips - Get Results and Generate More Leads

November 13, 2018

Majority of the online marketers who wish to advertise on Facebook and get more leads using Facebook boost posts will

Read More  
Why Should Your Business Hire Explainer Video Company Instead Of Freelancers?

November 10, 2018

We all know the benefits that having a website can help you trigger brand awarenes; overhauling your public image virtually

Read More  
Animation Video Maker | Promote Your Brand With Our Corporate Videos

November 03, 2018

Whether you’re a beginner or already an established brand, SME Networks is an expert Animation Video Maker company that

Read More  
Facebook Ads | Top 7 Effective Tips To Write Facebook Ads That Convert

November 01, 2018

I’m constantly on Facebook, scrolling through my company feed reading the news and looking at pics…I’m not

Read More  

Latest Events

CLO Engage Summit

Date: 10 January, 2019 - 10 January, 2019

India Investment Conclave

Date: 11 January, 2019 - 11 January, 2019

11th Global Intellectual Property Convention

Date: 17 January, 2019 - 19 January, 2019

PanIIT Conclave 2019 Artificial Intelligence

Date: 18 January, 2019 - 19 January, 2019

Mobile And Digital Marketing Summit

Date: 27 November, 2018 - 27 November, 2018

Emerging HR Summit

Date: 18 December, 2018 - 19 December, 2018

PITS - Pharma IT Summit

Date: 28 November, 2018 - 28 November, 2018

World AI Show - AI, MI & Robotics

Date: 22 November, 2018 - 22 November, 2018


Date: 21 October, 2018 - 21 October, 2018

Decathlon India Run

Date: 14 October, 2018 - 14 October, 2018

3 thoughts on “Outsourcing CRM Software Service Gives You A Better Understanding: On-Premise CRM vs Cloud CRM”

  1. CRM software sure is a flexible upgrade for your business. Having this benefit would help your business be adjustable according to the needs to the company as it grows bigger. Be sure to have the right CRM software and find one at http://tadeinfotech.com.ph/ Best!

Comments are closed.