With so many CRMs available, which one do you choose? It all comes down to cloud CRM versus on-premises software and depends on your business needs.
Remember the days of the Rolodex? Just a few decades ago, the physical rotating card holder was the primary contact storage system. Naturally, these days it seems like a rudimentary tool, especially since we now have digital customer relationship management (CRM) systems.
In fact, there are so many types of CRM software and hardware that businesses have a difficult choice when it comes to managing their customers and contacts. Mostly, the debate continues over which is better: cloud vs. cloud CRM. on-site CRM Software.
| Criterion | local CRM | Cloud-based CRM |
|---|---|---|
| Implantation | Installed and run on the organization's local servers and devices | Hosted on the supplier's servers and accessed via the internet |
| Initial cost | High initial software, hardware and configuration costs | Lower upfront costs, often subscription-based (monthly or annual) |
| Ongoing costs | Maintenance costs, upgrades and possible hardware upgrades | Upgrades, maintenance and hardware costs are usually covered by the vendor |
| Customization | Offers a high level of customization | Limited customization compared to on-premises |
| Data control | Full control over data and processes | The supplier controls data, processes and security |
| Data security | Security depends on the internal IT team | The vendor provides security, usually of a high standard |
| Accessibility | Accessible only through the local network unless additional infrastructure is configured for remote access | Accessible from anywhere with an internet connection |
| Implementation time | Generally takes longer due to server and infrastructure setup | Faster to implement as it does not require on-premises infrastructure |
| Sizing | Scaling requires purchasing and installing additional hardware | Scaling is often as simple as changing your subscription plan |
| System updates | Updates can be more complex, often requiring downtime | Updates are managed by the provider, often continuously and without downtime |
| Dependency | Requires an in-house IT team for maintenance and troubleshooting | Depends on vendor for support, maintenance and uptime |
| Best for | Larger companies or those with specific security requirements | Small and medium-sized companies or those that need more flexibility |
CRM software gained traction in the early 2000s, around the same time that cloud solutions emerged as a means of storing information online accessible across multiple locations. And since then, both cloud-based CRM software and on-premises solutions have become popular as tools for a wide variety of companies that rely on customer retention and recruitment.
Features of local CRMs
An on-premises CRM involves local hardware and software maintained at the location where the business is being conducted. Software is typically installed on local servers or individual devices.
An important attribute of this type of CRM is that it can be accessed without an internet connection. This means that if external servers go down or internet outages occur, the company can still use the tool.
Additionally, companies that use it usually purchase the software license, which means they can customize it as needed. One downside is that this means the company purchasing the license is responsible for maintaining and updating the on-premises CRM. This can be expensive and difficult for some companies. Additionally, individuals will need to frequently back up their data to physical servers.
At the same time, on-premises CRMs offer some security measures that cloud-based CRM software does not. Certain business leaders may feel more comfortable with full control over their data, which is stored on their premises and cannot be accessed online. Additionally, as the company itself is responsible for updates and maintenance, there is a lower likelihood of introducing bugs or unwittingly enabling cybercriminals.
There are many options when it comes to local CRM Software . Some of the most popular include:
- Microsoft Dynamics CRM
- ONYX
- OracleCRM
- SAP
- Siebel
Features of Cloud-Based CRM Software
Cloud-based CRM software uses the Software as a Service (SaaS) model, which involves paying a subscription to a company to use the CRM. No matter what, cloud-based CRMs mean you access the system via the internet, where all information is stored. Instead of using a local server, data is kept online.
A big benefit of a cloud CRM compared to on-premises solutions is that information can be accessed from any location with an internet connection. It also means employees work with the most up-to-date versions of files and documents at any time, reducing confusion.
Cloud-based CRM is also typically a less expensive option because the provider takes care of maintenance, backups, and updates. There is no need for expensive equipment or complex installations. Additionally, companies can change their payment and subscription plans as they scale their operations.
Another benefit of the cloud-based option is that many providers offer integration features so that the software can be easily used with other tools and platforms.
Some popular cloud-based CRM platforms are:
- Creation
- HubSpot
- Sales force
- Zendesk
- Zoho
Companies using on-premises and cloud-based CRMs: Which solution is right for you?
So the question remains: what is right for your business? Online vs. Online CRM local software ? It really comes down to your unique business needs and preferences.
The case for on-premises CRM
Large companies often need a high degree of customization; in this case, an on-premises CRM is often the preferable option. Additionally, implementing an on-premises solution means they fully own your software, an expense that many corporate giants can easily incur. In fact, the costs can even out in the long run because you don't need to pay the subscriptions associated with cloud-based software .
Another advantage of this model is that companies can fully secure their software as needed to meet their specific needs. Companies will have full control over their data, including any sensitive customer and employee information. This may be the preferable choice for companies that already have many on-premises solutions because they can easily integrate the software with other systems.
Ultimately, if many of your employees are working on-site and you have the IT infrastructure – including staff and technology resources – to support this type of system, this may be the best option for your CRM needs.
The case for cloud-based CRM
For newer or smaller businesses with lower budgets, cloud-based CRMs are often the software of choice. Initial costs are not that high – although it is important to consider long-term expenses – and companies do not need to worry about having an IT infrastructure in place. Teams can rely on the provider for maintenance and updates.
Additionally, as these companies grow, they can simply change their subscription plans to accommodate their different needs.
As you can probably imagine, cloud-based CRMs are ideal for remote environments and distributed teams . These systems are accessible from any location with an Internet connection, so different team members can view and edit information as needed.
So when it comes to cloud CRM versus on-premises solution, there's no clear answer: it depends on what's most important to your business and organizational needs.
There is a way to combine these two solutions: the hybrid approach. For companies that have some employees on-site and others working remotely, this may be a suitable model. In this case, you can take the parts of each system that work best for you and leverage them to meet your needs.
No matter which approach you choose, one thing is certain: in today's world, you absolutely need a CRM – your business will be lost with it.
(tagsToTranslate)CRM
