Why On-Premise CRM is Better Than On-Demand CRM

“Go with on-demand CRM” has been the message most people have seen in the past few years by on-demand trailblazers like salesforce.com. As there are many strong reasons to go with an on-demand solution, there are also some downsides one needs to consider before making a decision.

Richard Smith Vice President of CRM strategy, put together an article arguing why on-premise CRM is better than on-demand CRM. He brings up several good points such as security, cost, integration, and speed as to why on premise CRM is better.

He goes on to talk about how most hosted software providers guarantee that you will be up and running in 90 days. While this may be true, it’s usually only the “quick start” implementation and may exclude difficult tasks such as converting your existing data and/or setting up business processes. Continue reading “Why On-Premise CRM is Better Than On-Demand CRM”

Which CRM Deployment is Right for You?

Oracle White PaperI’m not one to usually plug Oracle (Siebel) products, but in this case there’s a decent white paper available to download for free. All you need to do is fill out a looong form and they’ll email you a link to the report. I’d provide a direct link if I could but you know I legally can’t do that. 🙁 Here’s a description from their page:

Find out if an on-demand service or on-premise application is the right CRM deployment option for your business.

“Certain vendors preach the software deployment model du jour as the only sure-fire path to CRM success before understanding your business requirements. Selecting the right deployment model must first and foremost address your key business problems and challenges, enabling you to meet your strategic business goals. The more you know the pros and cons of each deployment model, the more certain it is that you will embark on a path to CRM success.”

Download the white paper here.

On-demand CRM Vs On-premise CRM

The key factors that decide the appropriateness of a CRM deployment, whether on-site or hosted include the amount of integration required, customer processes, and the extent of operations required for a fruitful customer interaction.

An on-demand solution can be useful in scenarios where customer relationships are managed largely by the sales department which functions more or less as an independent entity.

Continue reading “On-demand CRM Vs On-premise CRM”

CRM On-Demand Or On-Premise – Which is Right For You?

A tremendous amount of confusion exists about the comparative value of on-demand versus on-premise CRM software. On-demand CRM is fundamentally a deployment option, with attributes that make it a suitable option for some businesses, but many companies are unsure about whether or not it is appropriate for them. The answer, as you might expect, is “it depends.”

There are three relatively simple differentiators that can be useful in understanding the best fit for your business, as you sort through the decision tree. These are: scope; degree of integration; and the importance you place on your customer processes.


Which, and how many, functions need to be part of your customer interaction systems?In many companies the sales department is relatively independent of the rest of the organization. Sales people and managers want to track leads and manage their pipeline, and may be attracted to a solution that can be deployed rapidly and expensed, without a major IT investment. For these organizations, an on-demand solution can be a good fit, particularly in small companies.

Other enterprises take a broader approach and manage all their customer interactions across several departments, e.g. coordinating marketing programs with telesales, or a contact center identifying new sales opportunities during a conversation with a customer. Companies that fit this multi-function utilization profile are better candidates for an on-premises system that can enable these people and systems to work together, primarily because of more complex integration challenges.


What customer data or processes need to be linked to other systems and departments?Integration is often vital to the success of any CRM solution, especially in the services sectors where the major ERP vendors don’t have a significant presence. A typical financial services organization, for example, may need to integrate customer data or documents stored in a variety of vital legacy, or other key infrastructure, systems which are highly customized for a specific purpose. For these organizations the ability to directly access and update data is vital.

By contrast, if you do not need to integrate real-time, or near real-time, customer information with other major systems an on-demand offering may be right for you. In some instances, companies find that transferring data using flat files on a daily or weekly basis is sufficient to meet their data integration needs.

Continue reading “CRM On-Demand Or On-Premise – Which is Right For You?”