Which CRM Model Is Better, on-Premise or Cloud-Based?

Back in the day, the Rolodex was a common way of organizing business cards using a rotating card holder. However, in contrast to today’s cutting-edge CRM systems, the Rolodex has become old-fashioned and is now hardly utilised.

Given the abundance of Customer Relationship Management (CRM) options available, businesses may find it challenging to pick the one that meets their requirements. The primary topic of discussion pertains to determining whether Cloud-based CRM or On-Premise CRM software is the more beneficial alternative.

During the initial years of the 21st century, there was an upswing in the use of cloud-based solutions to store data which could be retrieved from anywhere. During the same period, Customer Relationship Management (CRM) software started gaining prominence. Since then, businesses that depend on customer acquisition and retention have been integrating CRM software – either cloud-based or on-premise – into their operations.

Ready-made CRMs vs In-house Hosted Solutions

On-Premise CRM refers to a system hosted on a company’s physical infrastructure. The hardware and software for such systems are usually installed on local servers or the end-user’s device.

One of the unique features of this CRM is its capacity to function without a stable internet connection. If there is an internet outage or an issue with third-party servers, the company can still use the product.

Additionally, several companies obtain a license for this CRM, enabling them to adjust it to their specific requirements. Nevertheless, the licence holder must maintain and update the on-premise CRM, which might be burdensome and expensive for some firms. It is also crucial to conduct regular offsite backups of data to hard drives or other physical servers.

On-Premise CRMs feature specific security benefits that cannot be found in cloud-based CRM solutions. Opting to store data on-premises and offline can offer top-tier management greater peace of mind. Moreover, the likelihood of a cyber-attack is lower as the company is responsible for system maintenance and upgrades.

In-house customer relationship management software takes on several forms. Here are some of the more typical ones:

  • Microsoft-developed CRM Software
  • ONYX
  • Oracle CRM
  • SAP
  • Siebel

Characteristics of Cloud Hosted CRM Platforms

Cloud-based CRM software providers employ Software as a Service (SaaS) model where users pay a subscription fee to access CRM. Since the data storage for these systems is cloud-based, a stable internet connection is necessary, and the data is not saved on physical servers.

In contrast to traditional solutions, a cloud-based CRM system offers the ability to access data from any location with internet connections. As a result, employees can work with the latest versions of files and documents.

The service provider handles upgrades, backups, and maintenance, resulting in a greater cost-effectiveness for cloud-based customer relationship management systems. Uncomplicated setups or costly machines are not required. Moreover, when a company expands, they can modify their pricing and membership plans accordingly.

Cloud-based solutions have the added advantage of integration options, permitting connection with a wide variety of other software and systems.

Below are a few examples of well-liked customer relationship management (CRM) systems available.

  • Creatio
  • HubSpot
  • Salesforce
  • Zendesk
  • Zoho

Should You Host Your CRM Server On-Premise or in the Cloud?

When selecting between a cloud-based CRM system and an on-premises installation, it is important to contemplate your company’s specific business needs and individual preferences.

Reasons for Having an On-Site Customer Relationship Management System

An on-premise CRM is an ideal solution for large companies that require a high degree of flexibility and control. One of the most significant advantages of an on-premises system is that the business has complete ownership of the software, which is a cost that a large corporation can manage. Besides, as businesses don’t have to pay for subscriptions to cloud-based software, they may discover that they save money in the long run.

Businesses can modify their software security level according to their specific needs, expanding control over sensitive information such as customer and employee data. Also, the software’s flexibility allows for effortless integration with current on-premise solutions, making it an excellent option for companies with multiple systems in operation.

Ultimately, if the majority of your staff is in-house, and your organisation possesses the necessary IT infrastructure, along with IT professionals and resources, this could be the best CRM solution for you.

Utilizing a Customer Relationship Management System in the Cloud:

For startups and smaller businesses, cloud-based Customer Relationship Management (CRM) systems are usually the best option. They not only offer short-term cost savings, but also relieve companies from the burden of establishing and maintaining their internal IT systems. The supplier will handle routine maintenance and bug fixes for the team.

Moreover, these companies can effortlessly adjust their subscription plans, upgrading or downgrading them to meet their growing needs.

Cloud-based CRM systems are a perfect match for decentralised and mobile workforces. These systems can be accessed from any place with internet access, enabling team members to log in from their homes or offices to evaluate and modify data as necessary.

Deciding between cloud-based or on-premise CRM systems as the most advantageous for your organisation cannot be determined unambiguously.

A hybrid strategy merges the benefits of both on-site and remote working. For organisations that have a combination of in-office and remote employees, this approach could be advantageous. It permits the creation of a personalised approach that incorporates the best aspects of both systems.

A single thing is unequivocal though: the necessity of a customer relationship management system (CRM) in the contemporary corporate setting.

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