The Small Business CRM solutions can be on-demand and on-premise. This is what you will hear from any partner of SAP or Microsoft Dynamics. From here, they will present you the advantages and disadvantages of those versions, but maybe it is a good idea to know a few things about those, before deciding what the best offer is for your company.
Although the majority of specialists claim that the on-demand CRM solutions are more flexible, and that they come with a smaller cost, there are also opposite opinions claiming that the on-premise solutions are more efficient, in terms of costs and benefits.
Let’s see where the differences between those two Small Business CRM systems are.
The majority of small and medium companies choose on-demand systems. From the perspective of costs and responsibilities, this is the best one. The management is spared of meetings and decisions about infrastructure, which require time and money, and which is hardly covered with profits on the short term.
The feeling offered by the online solution is that of simplicity, and rapidity in implementing. Moreover, the management of licenses is simpler. If you move the entire IT infrastructure online, you will surely release the pressure on your IT department.
However, are the online solutions really better?
According to recent studies, a company that chooses on-premise Small Business CRM will benefit of some advantages.
- More than 40% of the users of on-demand CRM demonstrated performance growth. Compared with the growth rate of only 20% of the on-premise users, this is surely impressive
- More than 60% of the CRM on demand solutions are implemented in less than 3 months, while the on-premise solutions are implemented in less than 3 months for only 15% of clients
- 75% from on-demand implementations are made in the estimated budget, respecting the initial budget, and only 44% of the implemented CRM solutions on premise respect the initial allotted budget.
- 65% of the ON-Demand users say that this implementation requires an investment that can be easily planned and quantified, offering independence of the IT department, rapid implementation and upgrade, and improving the performance of the users.
The fans of onsite Small Business CRM say:
The on-premise solution is the best, and it is correlated for business. It can be a long-term solution. Although on-demand requires small initial investments, sometimes, supplementary costs can appear. For example, when it is required to implement the application on mobile terminals, or costs for specific branches of industry. Other costly operations might be offline synchronization, supplementary storage space on the hosting server, and other aspects for the on premise solutions. Those will not bring supplementary costs with on-site CRM.
The on-site solutions are scalable and more robust. When it comes to flux personalization, adding specific processes to the company is the right choice. The online solutions can’t be adapted to such high degree level.
As for the argument with the ROI (Return of Investment)) recovery, the short-term solution is On Line, and the long term is On Premise. However, even if it is harder to break even for On Premises solutions, it is more reliable.
The main problem of On Demand is security and safety on the long term. Sometimes, the safety policy of company data doesn’t allow adopting the On Line solution. Changing the company’s policy program is difficult, and this is also costly, so it can’t be done only for implementing a program, even if it is an important one.
Data protection for On Site is simpler, and it can be adjusted with the internal policies of the company.
The majority of On Line providers are serious about the total time of availability; there are cases in which it is not possible to work internally, because of the security problems of the provider. Bottom line, choosing On Site or On Demand solutions is a matter of preferences.