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CRM On-Cloud Vs. CRM On-Premise: What To Choose And How?

2018-06-20by Janet Waston

CRM applications have been around for a long time now and assisting to improve customer experiences, sales generation and more. Hosting these applications on the cloud have made working on these customer databases affordable and hassle-free. Cloud hosting services have taken the world by a storm, creating a huge market for applications and convenience for users. With options like Act! Cloud CRM, any business can utilize the platform and achieve business growth.

Customer Relationship Management or CRM software is the most basic requirement for companies of all sizes to manage and help organize customer data. CRM applications have been around for a long time now and assisting to improve customer experiences, sales generation and more. Hosting these applications on the cloud have made working on these customer databases affordable and hassle-free. With options like Act! Cloud CRM, any business can utilize the platform and achieve business growth.

Cloud hosting services have taken the world by a storm, creating a huge market for applications and convenience for users. In the year 2008, only 13% of CRMs were hosted on the cloud. The number increased to a stunning 87% last year. The boost in adoption rate indicates that enterprises are satisfied with cloud hosting technology and the benefits it provides.

Know Your Requirements

It is crucial to analyze what you need and your budget constraints before you decide to opt for CRM on-premise or CRM on the cloud. Ask these following questions.

Is your business in a growing stage? Would you need regular customization and upgrades?

Are you prepared for costs associated with building a CRM on-premise?

Can you ensure data security?

Do you have the infrastructure required for CRM on-premise?

Answers to the above will give clarity on what to choose for your company.

Differences: On-Cloud vs. On-Premise

It is not surprising that in the recent years, the focus has shifted from on-premise software to cloud-based services. It is natural to get confused over the choices. Following are a few pointers that may help.

1. Storage and Costing

In the case of CRM on-premise, all data is stored in servers located in the office location, thus creating high costs for servers and technical equipment. On the other hand, for CRM on-cloud, all data is stored on cloud in the data centers of the service provider. This means cloud becomes a comparatively affordable option. Also, no expenditure is needed for maintenance of servers in the case of cloud. For small business who work on a tight budget, CRM on-cloud proves to be a much profitable solution.

2. Security Concerns

With an increase in cyber attacks in the recent years, data security has become a major concern. Experts predict that expenses for cybersecurity will reach a massive amount of $ 1 trillion by the year 2021. In case of CRM on-premise, you are responsible for protecting your data. But CRM on-cloud users get a secured platform for their data which their subscription.

3. Flexibility

Cloud-hosted services can be scaled as per your requirements. This means that you just need to make changes in your subscription plan to adapt with your growing business needs. The process is extremely simple and hassle-free. Also, hosting providers update the software to the latest version on a regular basis, thus removing any bugs or glitches. All these benefits are not available in the case of CRM on-premise.

4. Ease of Use

As your data is available on the cloud, it can be accessed remotely from anywhere in the world, anytime. The technical support team of hosted service providers is usually available 24*7. All you need is an internet connection and your preferred device to work on.  

The above pointers clearly state that CRM on-Cloud is a more beneficial and inexpensive option for your customer database. CRM on-Premise is much more costly upfront and also in the long-term as they require an efficient IT team to install and maintain business-specific software and hardware. This is simply not an option for most small businesses and startups.

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Author

Janet Waston

Janet Waston

Sagenext Infotech LLC

Janet Waston is an accounting professional, she has expertise in hosting QuickBooks Hosting and she also consults about the benefits of QuickBooks Cloud hosting and Sage 50 Hosting.

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