To Cloud or Not To Cloud: On-Premise vs. Cloud CRM Debate Revisited

One of the more common conversations in our industry today is around whether to deploy a new CRM tool in the cloud or on premise. It may even be harder to know where to start weighing your options. The choice may seem like a simple one, but has far-reaching consequences. And it isn’t always black and white. Asking vendors to propose 2 configurations (Cloud  CRM and on-premise CRM) is not a productive way to making choices because you will end up comparing apples and oranges and ultimately, will have to choose one over the other.

Major technology vendors, such as Microsoft and Oracle, have already unveiled products that emphasize the benefits of storing data and running applications, platforms, and infrastructure in the cloud — both public and private. However, the majority of Information Technology leaders that I speak with at work remain pessimistic about the switch and are caught in the debate over maintaining on-premises data centers versus moving to the cloud.

So which configuration is right for you?

It is very hard to say without knowing a little about you and why you need a CRM tool and what you will be using it for. Much depends on the type of data you need to store, and the mindset your organization has regarding cloud computing in general.  In order to better understand which CRM system option is best for your company, there are a few important questions to consider:

  • Does your company have adequate IT support to administrate an on-premise CRM?
  • What are your security requirements, both of your accessibility and of the data itself?
  • How much customization do you need?
  • Does the cost per-head method calculate in your favor?
  • Do you want to integrate your CRM with other enterprise solutions?

However, I particularly prefer on-premise CRM tools over those hosted over the cloud (Cloud CRM). Many of my customers, who have tried both, share my sentiments. The most obvious and common reasons behind our choices include concerns about regulatory requirements and possible issues with connectivity and speed. Both concerns are often outside the control of your organization and your cloud provider and could make your data inaccessible at times. As well,  many companies raised concerns over the per-user costs associated with Cloud CRMs. If a large amount of workers need access to your database, it may be less expensive to host your own system [on premise].

Choosing the right CRM system is integral to your business. Be sure you know the pros and cons of each option before making your decision. Contact our Customer relationship management (CRM) for more information.

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