Hosted vs. On-Premise CRM


There are two primary types of CRM solutions for businesses: hosted CRM and on-premise CRM. Hosted CRM (also known as ‘on-demand CRM’) entails a company outsourcing a portion or all of its CRM functions to an ASP (application service provider). Unlike licensed on-premise CRM software, hosted CRM tools are payable on a monthly basis without requiring complex implementations or the assistance of an in-house IT team. The result is a cost-effective solution that promises to deliver a quick ROI (return on investment), while freeing a company to focus on its core competencies.

In fact, according to a study from Nucleus Research, more than 80 per cent of companies that outsourced CRM achieved a positive ROI. The study reported that problems with the on-premise CRM model include high software and consulting costs, ineffective user adoption, and poor management.

But for all its promises of immediate payback, the hosted CRM model does have its shortcomings. For one thing, whereas on-premise CRM solutions can be tailored to the particular needs of an organization, on-demand solutions don’t allow for the same degree of customization. What’s more, on-premise solutions are easier to integrate into a company’s existing business processes and applications.

For small- to medium-size businesses, however, the total cost of ownership of the solution over a 3 or 5 year period must be considered. On-demand applications commit the buyer to a long-term cost but required less implementation time. On-premise applications typically incur a capital cost year one with minimal re-occurring support costs.

ProAptivity specialise in the deployment of CRM solutions into small and medium size businesses. They are the Northern Ireland solutions partner for Maximizer CRM which offers both on-premise and on demand solutions with full Mobile CRM capabilities. For more information contact 028 90735630

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