Your Guide to Software Selection

On-Premise vs Cloud CRM Comparison

You know what you want out of your CRM solution thanks to SelectHub’s Massive CRM Features and Functionality List. But you still have one more step before your company enjoys the productivity benefits that come from a new CRM tool: choosing whether to go on-premise vs cloud CRM. Both approaches have benefits and drawbacks, so the right choice for you requires a bigger picture.

Ease of Deployment

Cloud-based CRMs have an overall ease of deployment since they are hosted at a vendor instead of your location. You don’t have to disrupt your existing infrastructure for a cloud CRM deployment; you simply adjust a few business processes and instruct employees of the app to download or the login location. In contrast, an on-premise CRM requires everything from on-site servers to an IT staff capable of installing and maintaining the necessary software.


Cost is another area cloud CRMs have an advantage, especially for small businesses. Most cloud CRMs use a subscription model for its pricing structure. The cost doesn’t require upfront installation or equipment fees because the vendor owns and maintains the necessary hardware. Indirect costs, such as IT maintenance and help-desk support, are also reduced as a cloud CRM vendor handles this on their end.

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Cloud-based CRMs and on-premise systems tie in terms of flexibility. Cloud-based CRMs have better scalability, which helps growing businesses adjust to growth they can’t predict. However, a major issue with cloud-based CRMs is the high reliance on vendors for support, software and hardware. On-premise systems may be harder to scale, but your business owns the hardware and software, giving you control over the solution. It’s also easier to incorporate custom applications into on-premise systems instead of hoping the cloud vendor has an API available for their system.


Security is another divisive attribute for cloud and on-premise systems. Small businesses without access to enterprise-level IT security benefit from having a cloud-based CRM, as the vendor has solution-specific security measures that exceed what a smaller business has access to. However, if you’re a mid-size business or enterprise, you have your own security measures that are often comparable, as well as a desire to keep data safe on-premise. Large companies get around this through a hybrid cloud infrastructure, which keeps sensitive information on-site while other functions are handled in the cloud.

Selecting Your CRM Vendor

After you complete your on-premise vs cloud CRM decision, find the right CRM vendor for your needs. Use SelectHub to compare vendors, create a vendor shortlist and perform outreach to CRM providers. SelectHub makes it simple to set up everything from the CRM RFP to the contract negotiation so you can get back to business faster.

Download Your Free CRM Requirements Template

SelectHubOn-Premise vs Cloud CRM Comparison

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