The Never-Ending Dilemma – On-Premises CRM Or Cloud CRM?

Nowadays, many companies are in a huge dilemma in choosing a CRM for their websites, whether they select on-premise CRM or cloud CRM. On-premises CRM solutions are built by a company for their own usage. Because some companies did not prefer to let a third-party vendor handle their data. On the other hand, in a cloud CRM, the user will get access via the internet as the actual program will be available on the servers of the service provider.

Let’s look at the difference between the two.

Cost

Many organizations prefer to choose cloud-based applications as it provides financial benefits to their business. It is better to pay SaaS subscription fees rather than paying a bill licensing fee. However, many companies find that their total cost of ownership for five to ten years is higher with cloud servers as compared to on-premise software. Small organizations find cost management as a problem whereas large enterprises invest money to ensure that they are paying only for the services they are using.

Flexibility

On-premise software is much more customizable than cloud software as vendors know when they need to customize the software to their customer’s needs. However, in cloud software, you will have to pay extra for customizations according to your preferences.

Security

Many organizations prefer to use on-premise servers because 77% of the respondents find cloud security a challenge. Many cloud experts assure us that the cloud is more secure but then again, it increases the risk of getting some attacks. All the data-protected solutions and other security tools can not be handled with cloud CRM. So, in this case, on-premise CRM is better than cloud CRM.

Availability

Organizations are usually able to avoid latency issues when they run applications on their own. Whereas, in the cloud, your vendors will be responsible for uptime and disaster recovery. This will remove your management burden as everything will be on your vendors.

As we can see that there is no one right answer to the question of whether to deploy on-premise CRM or cloud CRM for your business. So, you will have to evaluate your needs and calculate your total cost opportunity as per your business needs. However, in recent times people prefer to use cloud CRM as no one wants to take on this much burden and let their vendors work for them.