Quick guide to selecting CRM type: On premise CRM vs Cloud CRM

A Customer Relationship Management (CRM) suite links and integrates different interactions with the customer to improve internal efficiency and external customer satisfaction. Customer’s data is utilized for various important aspects of a business. Having this data stored in a system that works well for the enterprise is extremely significant and vital. This Infographic tries to explore two major CRM types: Cloud and On-premise based on numerous factors including cost, security, database, customization, scalability, accessibility, user-friendliness, ease-of-use, and several other criteria.

Quick guide to selecting CRM type: On premise vs Cloud


On-premise CRM is the traditional way of computing that involves installing the CRM suite in enterprise servers, complete with all associated paraphernalia such as database and other resources required for the CRM to function. The enterprise becomes responsible for everything. On the other hand, hosted CRM is available through the cloud on a subscription model. The user can simply sign up and start accessing the CRM site on the fly, without having to set up anything.

Hosted CRM comes with a multitude of benefits such as ease-of-use, centralization of data, anytime-anywhere availability, third-party service provider, cost-effectiveness, energy saving and many more. However, many experts believe that after a period of five years, the use of a hosted software package is no longer economical and on-premises suites recoup their capital investment. But this need not always be the case. An on-premises CRM still attracts significant recurring costs, which may actually match the subscription costs of a hosted CRM solution. The advantages of On premise CRM are manifold. It gives you more control over the database, higher security, helps you with business decisions, and is less susceptible to external issues.

Both Cloud and On Premise CRM have their own benefits and features. This infographic illustrates the key differences between on-premises and cloud based CRM, and analyzes if on-premises CRM solutions are still relevant for enterprises.



Author : Nayab Naseer Date : 01 Apr 2015