Choosing The Right CRM Solution: Cloud-Based Vs. On-Premises

When it comes to choosing the right CRM solution, should you choose a cloud-based one or an on-premises one? This depends entirely on your business requirements.

Ask yourself a couple of questions.

Is your business constantly evolving or changing? Will you need new features implemented frequently? Will you require continuous upgrades and customization? In such cases, it makes sense to
choose a CRM that is on-premises.

For an on-premises CRM you will require manpower and infrastructure to maintain the CRM.

So, let’s check out some of the pros and cons when it comes to choosing the right CRM solution.

Why Choose a Cloud-based CRM?

Cloud-based CRMs have grown in popularity only recently. In 2008 there were around 37% of Cloud-based CRMs in use. As of 2017, 87% of CRMs are cloud-based. Here are some of the reasons you
can opt for a cloud-based CRM.

You will not require a heavy sum of money to invest in infrastructure such as hardware and servers as these will be hosted by the CRM vendor.

The vendor will take care of the maintenance and additional costs that are related to the CRM infrastructure.

Moreover, the service provider will take care of updates to the CRM. You do not have to worry about updating the CRM frequently.

A cloud-based CRM means you can access the CRM anywhere and at any time. Moreover, you can also create mobile CRMs easily as these Apps can take information from the CRM.

The CRM can be customized easily and the updates can be hosted on the app store.

Why Choose an On-premises CRM?

Some organizations prefer not to let third-party vendors handle their data, hence they opt for on-site CRMs. While building a CRM will incur a lot of costs and hiring new employees, it is
the only option for such companies that handle sensitive information. So when it comes to choosing the right CRM solution, an on-premises CRM can be chosen.

With an on-premises CRM you can have complete control of your CRM.

Moreover, there is no worry about data theft, as the data is not hosted on a third-party site.

Building your own CRM can be useful in the long run as you do not have to pay as per the number of users.


In conclusion, choosing the right CRM solution, whether cloud-based or offline is not an easy task. You need to consult with a CRM consultant who can help you to make the choice between
the two. The CRM consultant will not only help you to choose the right CRM set-up but also help you to build it from the bottom-up for your requirements and objectives.


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