On-premise and hosted are the two main classes of customer relationship management solutions available today. Although the tools offered by both of them are almost the same there are many differences in terms of cost, implementation, performance and customization. This article will help you to know both on-premise and hosted CRM solutions are differentiate between them, and can guide to choose the right CRM for your business area.
On-premise CRM solutions are licensed stand-alone locally managed customer relationship management solutions. Companies purchase them from the software providers and install the on client/company computers to run special tasks. Hosted CRM solutions are on the other hand mostly open-source remotely manage ready-to-go solutions. They do not require purchasing, the CRM vendors allow the users to use solutions installed on their computer by charging a monthly usage fee. Hosted CRM solutions are the typical example of Software-as-a-Service or SaaS.
The difference between on-premise and hosted CRM solutions are increasing day by day. It is estimated that most small to medium size businesses prefer hosted solutions and large one prefer on-premise solutions. There are many reasons for it. And below are some most prominent ones.
We will start with cost, the most important factor in any business. Large corporations usually have good financial background are can afford great initial investments for purchasing and implementing the software, and also for setting-up servers, databases and internal networks. They usually have hundreds or thousands of users, which rules out the opportunity to subscribe software with monthly fee per user. Hosted CRM solutions do not require any upfront investment or maintenance cost. The limited number of users in small scale companies makes hosted CRM an excellent choice to avoid large-scale investments.
The second factor to consider is the data security and data back-up. On-premise systems do not require any intra-company data transfer, except those initiated by the user himself. All documents are saved and treated in local database which greatly enhances the data security, which is very important for many big companies. On the other hand small scale businesses do not have that much important data; so they can host this data in a remote database, which is maintained by the vendor. Hosted CRM solutions offer almost same level of data security as on-premise systems by using secured data transfer pathways and encrypted data.
Other reasons include technical knowledge and easy to implement. On-premise CRM implementation require the assistance of some skilled workers who are good in software development and network administration. The implementation period is also fairly lengthy for on-premise systems. These two factors work against small businesses. Hosted CRM solutions use web based graphically enhanced easy-to-follow interface for software implementation and are ready-to-go systems, just after the completion of sign-up process.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
HF Solution
By: shelby | 16-08-2008
can HF Solution be taken as a remedy for the liver. it purifies the blood and liver.
thanks you
Business World, Youth and Beauty. Does youth and ...
By: janedoechronicles | 12-08-2008
Business World, Youth and Beauty. Does youth and beauty play a significant part in business . . . and, the corporate world? If so, why?
Is it possible to have home made organic nutrient ...
By: saddam_lobaed | 06-08-2008
Is it possible to have home made organic nutrient solution? what resources to use ?
Small Business development
By: Paelu | 04-08-2008
I am setting up a business where I will have a private facility,20' X 40' area, available for training seminars, lectures and "hands on" massage classes. Most of the seminars, will be from 8am to appx 5pm and will last 2 to 4 days.
There will be 10 to 30 people in the classes.
I will have overnight accommodations available for a limited number of people to include the instructors and their assistants, (usually 3-4 people)
There will be kitchen privileges, and relaxation areas with TVs.
I am wondering where I would find more information on how to charge the
the instructors for use of the conference space, as well as, what kind of
room fees to charge for participants in the classes. I know how to break down my utilities for usage but am not sure how to project amount of usage ie utilities, wear, tear, and possible damages, liability insurance, housekeeping to include bed linens, bath towels etc. and what else I might need to include in my tabulations
Small business financing
By: theredsarecoming | 01-08-2008
How do I get financing for my small business idea?
What is the best (highest resolution) Image file ...
By: Joey | 31-07-2008
What is the best (highest resolution) Image file to print from out of BMP, GIF, TIFF and JPEGS?
Q&A Powered by:
Latest Software Articles
Sap Business One Partner Atlanta, Chicago Newsflash: Data Conversion
By: Andrew Karasev | 06/10/2008
SAP B1 is on the way to take its ERP and MRP applications market share for small and mid-size businesses. This publication should help you with your SAP Business One consultant, VAR, reseller and implementation partner selection
Mike Billman Certified in Connectship for Qc Software
By: Thomas Cutler | 06/10/2008
Mike Billman Certified in Connectship for QC Software
Cosmetic Industry Text Includes Chapter by Apics Certified Preston Blevins
By: Thomas Cutler | 06/10/2008
Cosmetic Industry Text includes Chapter by APICS Certified Preston Blevins
Bid Goodbye to Computer Virus!
By: K.P.Pandey | 06/10/2008
computer support resources more or less offer same kind of services. The array can include support services like PC health check up, data back-up services, troubleshooting computer errors, and handling basic installation/reinstallation for PC, operating systems or any other software applications. These services are not just limited to desktops or laptops
Comparison for Ipod Users: Free Online Converter & DVD to Ipod Converter
By: ailisaone | 06/10/2008
Compare two channels of obtaining video sources for iPod: one is using online converter, the other is DVD to iPod Converter. After the general introduction of the two methods, I will analyze their advantages and disadvantages for you to choose according to your need.
Axigen Reporting Service Configuration and Integration With Cacti
By: AXIGEN Team | 06/10/2008
This extensive article describes in full details how to properly configure the AXIGEN reporting service, including the steps for adding AXIGEN activity charts, configuring the SNMP service and integrating the AXIGEN reports within the Cacti network graphing solution.
Hyip Script
By: AJ Square Inc | 06/10/2008
AJ HYIP Script is a latest advanced features and most suitable package for investment sites. We provide high quality software packages such as HYIP Script, e-commerce, auction script and article script.
Bespoke Software Development Excludes the Pattern Solutions and Designs
By: kisltech | 06/10/2008
Bespoke Software Development, Transition and Outsourcing Services that help both end-user as well as IT organizations meet a variety of challenges.
More from Praveen Ortec
Benefits of Hosted CRM Software
By: Praveen Ortec | 01/07/2008 | Software
Customer Relationship Management, CRM, practices really got popular after the introduction of hosted systems. Hosted CRM software benefited even smaller companies to reap all the benefit of automating business processes, having a good database and managing opportunities at lowest costs.
Things to Consider When Going for a CRM Software
By: Praveen Ortec | 04/05/2008 | Business
There are mainly two types of CRM systems as on-demand CRM and on-premise CRM. One company should consider various factors when selecting CRM software.
Small Business Saas Solutions
By: Praveen Ortec | 06/04/2008 | Small Business
The main contributor of today’s small and medium business success is Software as a Service applications, which came into being as offspring of high-speed internet. SaaS applications offered a brand new world of technology for competitive costs. Except money savings, SaaS applications offer many other benefits especially to small businesses.
CRM Software and Business Management
By: Praveen Ortec | 04/01/2008 | Business
With in the last 10 years or so CRM solutions have revolutionized business management practices and have surely contributed in designing today’s most successful marketing strategy in which customers are given supreme importance.
Forex Trading - Explained
By: Praveen Ortec | 23/05/2007 | Currency Trading
This article is on forex trading. Learn more about the forex or FX or money market with interesting trading statistics. Know more about the procedure of forex trading, the nature of the market and services of forex brokers.
Direct Access Stock Trading – an Overview
By: Praveen Ortec | 09/05/2007 | Investing
This article provides information about direct access stock trading. Know the procedure and practices involved in it and the merits of it. Find information about direct access stock brokers and the commissions charged by them.
Futures Trading – Definition, History and Types
By: Praveen Ortec | 02/04/2007 | Investing
This article provides information about futures trading and commodity trading. Learn the history, practice and types of futures trading, differences between forward contracts and future contract. Know more about the different commodity products available for futures trading.
Online Stock Trading Styles
By: Praveen Ortec | 10/01/2007 | Investing
Article provides information about various styles of online trading for stocks, options, futures and forex. Includes short-term trading styles such as day trading and swing trading. Know more about popular trading methods such as technical trading, economist trading etc.
Computers 
