With the onset of concepts like (SAAS) and cloud computing customers have multiple choices of choosing a platform which suits their requirements and meet their budgets. The On Demand CRM application has become the buzzword in the CRM application industry. All the leading vendors have either launched or our about to launch the cloud format of their CRM applications. The On Demand CRM software has multiple advantages including quick deployment, no infrastructure investment and pay per use.
However as an organization while making your choice you should keep the following points in mind which will help you to choose between an On Demand and an On Site CRM
– User Requirements
– Data Sensitivity
– Internal IT Team
– Integration Requirements
User Requirements- The CRM which you choose should meet the functional requirements of the organization. Also depending upon requirements the customization capability of the solution should be also looked upon. On Demand solutions are configurable which means you can add fields, modify workflows and set user profiles. On premise solutions offer more scope for customizations like adding custom entities, screens, tabs and tables.
Budgets and TCO- While choosing a solution the TCO and budget should be studied. If the deployment is to be done for a big team at a national level On Premise option can be looked at. Initial investment will be higher but recurring costs will be lower. Also if an organization feels that number of incremental users will increase quickly this model can be looked upon. The On Demand model can suit companies which has relatively smaller teams, are looking at no capital expenditure upfront and don’t have a long term CRM roadmap. Also the ability to migrate from one option to the other will help you take advantage of both the models from a cost perspective.
Data Sensitivity- In an On Demand CRM customer data resides on the server of the service provider as no hardware or software infrastructure is maintained by the client. For some organizations data sensitivity is of prime importance therefore hosting data on a 3rd party server needs to be judged properly. However for an SMB this can be an advantage because they might not have a secured data storage facility in house for such companies it can be beneficial to host information in a secure data centre.
Internal IT Team- For an SMB appointing an internal IT team which is a combination of database and network experts can be an expensive proposition. In such a scenario the On Demand model of CRM makes more sense as the IT infrastructure and various crucial aspects like database back-ups, firewalls, and antivirus installation is taken care by the service provider. Since in an On Demand model the CRM is deployed in house on company’s IT infrastructure, system administrators are required for the upkeep of the infrastructure.
Integration Requirements- On Premise CRM applications provide point to point integration with external systems like ERP software’s. On Demand CRM applications are more suitable when used as independent systems. However the scenario is changing now with the availability of web service API’s, On Demand CRM’s are opening up to integration possibilities.
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