heart balloonkissheart balloon mobilekiss mobile
04Dec, 2024
Language blog :
English
Share blog : 
04 December, 2024
English

Cloud-Based CRM vs. On-Premise CRM: Which Is Right for Your Business?

By

2 mins read
Cloud-Based CRM vs. On-Premise CRM: Which Is Right for Your Business?

Customer Relationship Management (CRM) systems are indispensable for businesses that want to streamline their operations, enhance customer experiences, and drive growth. When it comes to choosing a CRM, businesses must decide between cloud-based CRM solutions and on-premise CRM systems. Each option comes with its own set of advantages and challenges, and the right choice depends on your company’s size, needs, and goals.

In this article, we will compare cloud-based CRM and on-premise CRM solutions across key factors like cost, flexibility, scalability, security, and maintenance. We will also look at real-world use cases to help you make an informed decision about which CRM deployment option is best suited for your business.

Cloud-Based CRM: Flexibility, Scalability, and Accessibility

Cloud-based CRM systems are hosted remotely and accessed over the internet. These systems are provided as a service (SaaS) and typically involve a subscription-based pricing model. Major cloud CRM platforms like Salesforce, HubSpot, and Zoho CRM are designed for businesses of all sizes and are easy to scale as needs grow.

Key Advantages of Cloud-Based CRM:

  1. Lower Upfront Costs: Cloud-based CRM typically requires no initial hardware investment or on-site infrastructure. This reduces the financial burden for businesses, especially small to mid-sized companies.

  2. Scalability: Cloud CRMs can grow with your business. You can easily add new features, users, or storage as your needs increase without the need for significant infrastructure changes.

  3. Accessibility: With cloud-based systems, your team can access the CRM from anywhere with an internet connection. This is especially useful for remote teams, sales reps, and customer service agents who need flexibility.

  4. Automatic Updates and Maintenance: Cloud CRM providers take care of software updates and system maintenance. This means businesses don’t need an in-house IT team to manage the system’s technical aspects.

  5. Security: Leading cloud CRM providers often have robust security measures in place, including data encryption, firewalls, and backup systems, to protect sensitive customer data.

Key Disadvantages of Cloud-Based CRM:

  1. Ongoing Subscription Costs: Unlike on-premise CRMs that have a one-time payment model, cloud-based CRMs require ongoing subscription payments. Over time, this can add up.

  2. Dependence on Internet Connectivity: Cloud CRMs rely on an internet connection, which could be problematic in case of network outages or connectivity issues.

  3. Less Control: With cloud CRM, the software is hosted by a third-party provider. This means businesses have less control over system configurations and customizations.

 

On-Premise CRM: Complete Control and Customization

On-premise CRM systems are hosted on the company’s own servers and infrastructure. This type of CRM is often installed and maintained locally within the company’s IT environment, requiring the business to manage the hardware, software, and system updates.

Key Advantages of On-Premise CRM:

  1. Full Control Over Data: Since the CRM is hosted on-site, businesses have full control over their data and can implement specific security protocols tailored to their needs. This is particularly important for industries with strict data privacy requirements.

  2. Customization: On-premise CRMs can be customized more easily to fit unique business needs. Custom workflows, features, and integrations can be developed specifically for your organization.

  3. One-Time Costs: On-premise CRM systems typically have higher upfront costs but don’t involve recurring subscription fees. For businesses with a long-term vision, this can be a more cost-effective solution over time.

  4. No Dependence on Internet: Since the CRM is hosted internally, your team doesn’t rely on internet connectivity to access the system, making it a more reliable solution in areas with unstable internet access.

Key Disadvantages of On-Premise CRM:

  1. High Initial Investment: On-premise CRMs require substantial upfront costs for hardware, software licenses, and IT infrastructure. Additionally, there are ongoing costs for maintenance and system updates.

  2. Maintenance Burden: Businesses must maintain the infrastructure and software. This often requires a dedicated in-house IT team, which can add to operating costs.

  3. Scalability Challenges: Scaling an on-premise CRM system involves purchasing new hardware and software licenses, which can be expensive and time-consuming.

  4. Limited Remote Access: Unlike cloud-based solutions, on-premise CRMs are typically limited to access from within the company’s physical network. This can be a disadvantage for businesses with remote teams or multiple office locations.

Key Considerations for Choosing the Right CRM

1. Cost

  • Cloud-Based CRM: Typically lower upfront costs with subscription-based pricing.

  • On-Premise CRM: High initial investment but no recurring subscription fees. Maintenance and upgrades can incur additional costs.

2. Scalability

  • Cloud-Based CRM: Easy to scale with no need for significant infrastructure changes.

  • On-Premise CRM: Scaling requires new hardware and software licenses, which can be expensive.

3. Control and Customization

  • Cloud-Based CRM: Limited customization options; however, integrations and add-ons can extend functionality.

  • On-Premise CRM: Full control over customization, allowing for tailored features and workflows.

4. Security

  • Cloud-Based CRM: Trusted cloud providers invest heavily in security, but businesses must trust the provider to protect data.

  • On-Premise CRM: More control over security, but businesses must manage it themselves, which can be resource-intensive.

5. Maintenance and Updates

  • Cloud-Based CRM: Automatic updates and maintenance handled by the provider.

  • On-Premise CRM: Requires in-house IT resources for system updates, patches, and maintenance.

Real-Life Example: Transitioning from On-Premise to Cloud CRM

A mid-sized logistics company had been using an on-premise CRM to manage their customer relationships and track delivery schedules. The system had worked well for several years, but the company began facing challenges as their business grew:

  • High maintenance costs for the IT infrastructure.

  • Difficulty scaling the system to accommodate increased demand.

  • Delays in receiving software updates.

After evaluating the costs and limitations of their on-premise CRM, they decided to switch to a cloud-based CRMsolution. The company transitioned smoothly, and the results were immediate:

  • Maintenance costs were reduced by 30%, as the cloud provider handled system updates and infrastructure management.

  • The cloud CRM allowed the team to access customer data from anywhere, improving collaboration among remote teams and warehouse staff.

  • The new system was highly scalable, and the company could easily add new users as their business expanded.

The company realized that by choosing a cloud-based CRM, they gained a more flexible, cost-effective solution that allowed them to focus on their core business without worrying about infrastructure management.

Conclusion: 

Ultimately, the decision between cloud-based and on-premise CRM solutions comes down to your business’s unique needs, resources, and goals.

  • Cloud-Based CRM: Best for businesses looking for a flexible, scalable solution that requires minimal upfront investment and allows remote access.

  • On-Premise CRM: Ideal for businesses that need full control over their data and customization, and have the resources to manage infrastructure and security.

By evaluating factors like cost, scalability, control, and your long-term business goals, you can choose the CRM solution that will best support your operations and customer relationships.

 

Written by
Pooh Phuvit Jaruratkit
Pooh Phuvit Jaruratkit

Subscribe to follow product news, latest in technology, solutions, and updates

- More than 120,000 people/day visit to read our blogs

Other articles for you

18
February, 2025
Inbound Marketing การตลาดแห่งการดึงดูด
18 February, 2025
Inbound Marketing การตลาดแห่งการดึงดูด
การทำการตลาดในปัจจุบันมีรูปแบบที่เปลี่ยนไปจากเดิมมากเพราะวิธีที่ได้ผลลัพธ์ที่ดีในอดีตไม่ได้แปลว่าจะได้ผลลัพธ์ที่ดีในอนาคตด้วยเสมอไปประกอบการแข่งขันที่สูงขึ้นเรื่อยๆทำให้นักการตลาดต้องมีการปรับรูปแบบการทำการตลาดในการสร้างแรงดึงดูดผู้คนและคอยส่งมอบคุณค่าเพื่อให้เข้าถึงและสื่อสารกับกลุ่มเป้าหมายได้อย่างมีประสิทธิภาพ Inbound Marketing คืออะไร Inbound Marketing คือ การทำการตลาดผ่าน Content ต่างๆ เพื่อดึงดูดกลุ่มเป้าหมายเข้ามา และตอบสนองความต้องการของลูกค้า โดยอาจจะทำผ่านเว็บไซต์ หรือผ่านสื่อ Social Media ต่าง ๆ ซึ่งในปัจจุบันนั้น Inbound Marketing เป็นที่นิยมมากขึ้นเพราะเครื่องมือและเทคโนโลยีที่พัฒนาขึ้นมาในปัจจุบันทำให้การทำการตลาดแบบ Inbound Marketing นั้นทำง่ายกว่าเมื่อก่อนมาก นอกจากนี้การทำ Inbound Marketing ยังช่วยสร้างความสัมพันธ์และความน่าเชื่อถือให้กับธุรกิจได้เป็นอย่างดีอีกด้วย หลักการของ Inbound Marketing Attract สร้าง

By

3 mins read
Thai
18
February, 2025
Preview email ด้วย Letter Opener
18 February, 2025
Preview email ด้วย Letter Opener
Letter Opener เป็น gem ของ ที่ใช้แสดงรูปแบบของอีเมลที่เราต้องการจะส่ง ก่อนที่จะส่งจริง เพื่อให้ง่ายและไวต่อการทดสอบ Let's Get started... Installation เพิ่ม Gem ใน Gemfile จากนั้นรัน `bundle install` # Gemfile group :development do gem "letter_opener" gem "letter_opener_web", "~> 1.0" end กำหนดการส่งอีเมลโดยใช้ letter_opener (กรณี Production จะใช้เป็น :smtp) # config/environments/development.rb config.action_mailer.delivery_method

By

3 mins read
Thai
18
February, 2025
การเปลี่ยนทิศทางผลิตภัณฑ์หรือแผนธุรกิจ Startup หรือ Pivot or Preserve
18 February, 2025
การเปลี่ยนทิศทางผลิตภัณฑ์หรือแผนธุรกิจ Startup หรือ Pivot or Preserve
อีกหนึ่งบททดสอบสำหรับการทำ Lean Startup ก็คือ Pivot หรือ Preserve ซึ่งหมายถึง การออกแบบหรือทดสอบสมมติฐานของผลิตภัณฑ์หรือแผนธุรกิจใหม่หลังจากที่แผนเดิมไม่ได้ผลลัพธ์อย่างที่คาดคิด จึงต้องเปลี่ยนทิศทางเพื่อให้ตอบโจทย์ความต้องการของผู้ใช้ให้มากที่สุด ตัวอย่างการทำ Pivot ตอนแรก Groupon เป็น Online Activism Platform คือแพลตฟอร์มที่มีไว้เพื่อสร้างแคมเปญรณรงค์หรือการเปลี่ยนแปลงบางอย่างในสังคม ซึ่งตอนแรกแทบจะไม่มีคนเข้ามาใช้งานเลย และแล้วผู้ก่อตั้ง Groupon ก็ได้เกิดไอเดียทำบล็อกขึ้นในเว็บไซต์โดยลองโพสต์คูปองโปรโมชั่นพิซซ่า หลังจากนั้น ก็มีคนสนใจมากขึ้นเรื่อยๆ ทำให้เขาคิดใหม่และเปลี่ยนทิศทางหรือ Pivot จากกลุ่มลูกค้าเดิมเป็นกลุ่มลูกค้าจริง Pivot ถูกแบ่งออกเป็น 8 ประเภท Customer Need

By

3 mins read
Thai

Let’s build digital products that are
simply awesome !

We will get back to you within 24 hours!Go to contact us
Please tell us your ideas.
- Senna Labsmake it happy
Contact ball
Contact us bg 2
Contact us bg 4
Contact us bg 1
Ball leftBall rightBall leftBall right
Sennalabs gray logo28/11 Soi Ruamrudee, Lumphini, Pathumwan, Bangkok 10330+66 62 389 4599hello@sennalabs.com© 2022 Senna Labs Co., Ltd.All rights reserved.