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Cloud Based CRM vs On-Site CRM – 4 Things to Consider While Choosing What’s Best For Your Company

Cloud Based CRM vs On-Site CRM – 4 Things to Consider While Choosing What’s Best For Your Company
While assessing the plethora of CRM suppliers in the B2B market, one of the major requirements to consider is which CRM deployment is best for you. Some companies require the cloud based CRM or SaaS or web-based CRM, while others may find on-site CRM software to be best for them. Most marketers believe that cloud based solution is the future of CRM; however each deployment type has its own pros and cons.

Your decision for CRM deployment is heavily influenced by what your users require from the system. Let’s look at 4 critical things to consider before you decide which CRM deployment suits you the best:

1. Type of Access and Ease of Access:

It is important to determine how much access of CRM the users will need. It is imperative to decide what how and when the access will be most useful. Will it be confided to the office space or on the go? The accessibility of CRM software should be the ice-breaker for evaluating your deployment options.

Cloud based CRM software practically offers unlimited access. It is available on any device with an internet access. Additionally, most cloud based CRM providers have created, or are in the process of creating mobile apps that offer a mobile-friendly CRM experience.

On the other hand, if the CRM users access the data only in the office, then deploying an on-site CRM makes more sense. Such deployment is more restrained than the cloud based one. The access to CRM is limited to the office; however, this completely cuts down the connectivity issues.

2. IT Infrastructure for CRM Deployment:

You need to check the overall infrastructure of your IT department. Evaluate its size and current resources before deploying a suitable CRM platform. Also check the budget allocated to the department.
For SMEs with few resources and a small IT budget, cloud based CRM is a more viable option. It requires little intervention from the IT department as the CRM solution is hosted by the company that develops it. Therefore, if any issues do arise, all you need to do is to reach out to the customer services of the vendor. This also saves a lot of money and time that you can reinvest somewhere else.
On-site CRM, on the other hand, need a lot of attention from the IT department. When you set up any software on-site, you are effectively taking all the aspects of platform management. This implies that your IT department needs to dedicate substantial amount of time and resources to implement as well as manage these systems. Usually, big companies have such resources on hand, and are more likely to adopt an on-site CRM platform.

3. Budget for CRM Software:

One of the most basic considerations before buying any software solution is the costing. Most buyers look solely at the cost of the system without paying much attention to the hidden costs involved with these platforms.
On the surface, cloud-based CRM is cheaper than the on-site one. The company usually only needs to pay the subscription fee. Most of these fees depend upon the number of users accessing the system, but some vendors have flat fees irrespective of number of users. This is the reason why cloud-based CRM is more popular with small businesses.

On the other hand, on-site CRM are costlier, but very popular with larger companies. These software have upfront costs and provide assistance in purchasing and installing servers. However, even considering the expensive nature of on-site CRM, it provides greater longevity, which will eventually reduce the overall cost. The long-term benefits of on-site CRM outweigh the short-term benefits of cloud-based CRM.

4. Data Security and Transfer:

Cloud-based CRM offers greater degree of data sharing as compared to the on-site platform. It can offer data to your employees regardless of their location. Your executives, marketers, sales reps, clients, and partners can access the data in real-time.

On the other side, on-site CRM solutions offer higher data security. The chances of data breach with an on-site platform are less likely because the data is only flowing from internal servers to the concerned devices. Though cloud-based CRM vendors are offering a high level of data security and closing on the gap in the recent years, on-site solutions are still considered a safer deployment.

About The Author

Anuprit Orse

Anuprit brings a vast experience across functions viz. business management, key account management, and sales operations & has a keen eye for identifying, nurturing and developing new opportunities and has proven record of connecting businesses. Being a focused entrepreneur, Anuprit also offers his edge as an influencer and seed funder to budding enterprises. Over the last 15 years’, he has helped set up several ventures – Prolific Sales Pvt. Ltd., SG Cubes Pvt. Ltd., Business Morphosis, and Creazione IT Solutions. All these have gone on to deliver ample success in the subsequent years. Anuprit has also worked as an independent consultant to a number of companies ranging from start-ups to Fortune 1000 assisting them close deals with companies like HP, Xerox, AWS, Microsoft, Air Canada, Northrop Grumman, Cisco, SAP, Adobe & Honeywell Automation. Here, he assisted them in devising precise strategies to identify customer segments for their respective products and services. He also has a strong knack of devising successful marketing campaigns resulting into a distinct growth of businesses.

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