If your company is looking for CRM software, you can narrow your choices significantly by deciding whether you want a cloud-based CRM solution or an on-premises one. There are advantages to each, as well as disadvantages. Here’s how you can make your decision.
Arguments for Cloud CRM
Cloud-based CRM is generally less expensive in terms of upfront costs. It also does not require a lengthy and laborious installation process, and there are no regular upgrades to worry about. Your workers have constant access to the latest version of your CRM software. Here are the other reasons why businesses consider Cloud-based CRM:
• Makes data accessible to remote workers and branch locations
• Usually provides easy access via mobile devices with no compatibility issues
• Comes with no installation process, no upgrades, and no regular maintenance
• Is the Eco-Friendly way to operate
• Is the cheapest way to obtain a CRM solution
Arguments for On-Premises CRM
But cloud-based CRM isn’t for every company. There are still a number of reasons to consider on-premises CRM software instead, including:
• Maintain complete control of your customer database
• Industries that need to adhere to compliance regulations (such as health care) might be required or advised to keep data on-site at all times
• Companies that need the CRM data for business and operational intelligence might opt for an on-premises solution that is integrated with other enterprise software systems
• Companies with a large number of employees may actually get a lower TCO with an on-premises solution
• Connectivity issues can’t keep you from your data and CRM application if your software is on site.
Making Your Decision
Many of the cloud-based CRM applications are designed with the smaller business in mind, but there are excellent enterprise-class CRM solutions that are also based in the cloud. Small businesses tend to go for cloud-based CRM because it doesn’t require them to have a full IT department on staff. But larger businesses can also take advantage of the fact that most cloud-based CRM applications can be easily integrated with other cloud applications — so if you already have numerous cloud-based applications, a cloud-based CRM just makes sense.
However, enterprises with large numbers of employees find that it costs more for them to purchase enough user licenses for all their workers than it would cost to simply buy an on-premises CRM solution and install it on-site. Many enterprises also choose the security and accessibility of an on-premises software application. With on-premises software, an internet outage won’t derail the efforts of your sales and marketing teams. Finally, enterprises that desire customization of their CRM solution will find that on-premises software affords a great deal more customization than a cloud-based software system does. Most cloud-based solutions are offered as-is, with little or no customization available.
If you’re ready to begin the CRM selection process, take advantage of our free selection resources. Get a free software selection requirements template now.