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Step 3: Select the CRM Deployment Model (CRM Online vs CRM On Premise)

Written By: Cliff Ford on January 15, 2013 700 Comments

STEP THREE of a successful CRM implementation is to select the appropriate deployment model. The Trend is toward CRM in the Cloud

It is clear that the global CRM market is becoming more and more focused on Cloud CRM, aka On-line CRM. In 2010 Cloud Computing became the number one CRM trend. Salesforce.com has been moving the marketplace in this direction for over 5 years. SugarCRM, a SaaS/Online CRM system, has become the dominant CRM in the world of open-source. And in 2010 Microsoft announced that their strategic direction will be Online CRM. Although they will continue to offer On-Premise CRM, the clearly defined strategic direction is Online CRM. More and more CRM Professionals are heading in this direction.

Pros of Cloud CRM (Hosted SaaS)

No long rollout time-frame. The implementation is almost immediate – because typically the vendor configures and maintains the servers.
No server (hardware) purchase or maintenance (staffing) is required. Neither is server software licensing required.
No software installation is required. There are two key exceptions: (1) a plug-in for integration with Microsoft Outlook (2) offline access via a synchronization database on the local machine.
No software or server upgrade is required. Upgrades and improvements are typically automatically pushed out. This can normally be easily monitored and managed by the adminitrator.

Cons of Cloud CRM (SaaS/Online CRM)

You are normally locked into a monthly service contract
In some instances, you are limited to a specific number of users
Database size is limited at times
Storage Size can be limited at times (with substantial price increases for extra storage requirements)
Custom Entities can be limited at times (although 200 entities is probably more than enough)
Custom Workflows can be limited (although 200 workflows is likely more than enough)
Some systems charge more when users reside outside the US or Canada
Some CRM solutions supported only the English language – and charge more for others

TCO considerations

To download our Excel tool for measuring and comparing the Total Cost of Ownership (TCO) of multiple Online and On-Premise CRM systems, click here.

About the author

Author: Cliff Ford. CRM Solution Comparison has provided CRM cloud software reviews and evaluations for several years. Our staff of CRM certified partners implements, tests and uses the various systems discussed within this blog. We have created a number of excellent CRM comparison and evaluation tools that we provide our readers. Google