What Do Hosted CRM Solutions Get You, Anyway?

Hosted or on-demand solutions now offer a serious alternative to the complexities and risks associated with traditional CRM solutions. Consequently, more and more companies are discovering that hosted CRM solutions simplify the management of complex business processes resulting in low risk, low cost, rapid ROI and high value.

Here are four main reasons why more and more companies are considering hosted CRM:

1. Simplifying Choices Means Lower Risk

Unlike traditional CRM solutions, hosted CRM solutions offer companies a choice in how they want the solution delivered. Companies can choose to purchase a license and let a service provider manage the logistics and infrastructure of their software or they can choose to rent a solution, utilize it in their operations and decide to purchase the solution at a later date. Alternatively, an additional hosted option is emerging. Large organizations can now opt to purchase the right to use a software license, install the software at their location and host it for each of their departments, thereby reaping significant savings in avoided individual license costs.
Once a company has chosen how it wants the solution to be delivered, it is free to change the delivery model should the company’s needs change. So a company can choose to access the hosted solution, then after a few years of paying subscription fees, decide that it is more economical to own the solution, purchase it and bring it in-house. All of this can be done seamlessly without the actual user even noticing a difference.
Whatever the choice, hosted solutions make it simple for companies to use applications the way they want, for as long as they want. The choices that a hosted solution offers are virtually unlimited, not just in delivery and pricing options, but also in terms of customization, service and features.
2. Simplifying Implementations Means Rapid ROI

Bundling software, hardware, systems configuration and integration into one offering that can be configured to a company’s needs reduces implementation time drastically. This translates into faster time-to-customer and rapid ROI.
3. Simplifying Processes and Services Means Lower Costs

With a hosted solution, an organization can take advantage of lower costs and rapid ROI. With software running at a centralized, remote location, hosted solutions can reduce software implementation and customization costs dramatically. Initial start-up fees are minimal and the monthly subscription fee is based on usage, providing complete transparency into billing.
Hosted applications eliminate the need for the installation of software at the client site, thus saving in initial installation and ongoing maintenance. The service provider guarantees performance, reliability and support through service-level agreements with the client. Software maintenance, support and updates as well as infrastructure systems and network monitoring are centrally administered with hosted CRM solutions. This frees up technical resources for other projects.
4. Simplifying Delivery Means High Value

The hosted CRM solution is designed to minimize the risks associated with implementing a traditional, on-premise solution. The figure below depicts how the general risks of using a traditional, licensed offering directly correspond with the general benefits of choosing an on-demand solution.
Lengthy implementations (six+ months) and slow speed-to-market
Short implementations (30-45 days) and quick speed-to-market
Price ranges in the millions
Price ranges in the thousands
Service costs greater than license costs
License costs greater than service costs
Relatively high capital investment
Low capital investment
Hardware, support and services not typically included in license cost
Subscription includes all resources (hardware, software and people)
Upgrades and maintenance are separate investments from the license
Upgrades and maintenance are included in the subscription
Hosted CRM solutions can be an option for any organization – regardless of size. If your company could benefit from lower risk, lower costs, rapid ROI and high value CRM solutions, then you may want to further research on-demand CRM.
This article is an excerpt from the Cincom white paper “On-Demand CRM: Simplifying Contact Center and CRM Solutions.”
Randy Saunders is the marketing director for Cincom’s Customer Experience Management products. He can be contacted at rsaunders@cincom.com.

1 thought on “What Do Hosted CRM Solutions Get You, Anyway?”

  1. The small business benefits the most from hosted crm solutions. They are certainly the driving force behind making hosted crm solutions more popular. In addition, small businesses are able to deal with the fact that their data is hosted somewhere other then their network. They see it as a plus, and leave the business of maintenance, security, and backup to the hosted crm solution provider that they feel the most comfortable with. Enterprises most often feel insecure about their data being somewhere other then their managed network. Most IT Directors are territorial about their network and the data that flows within it.

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