CRM – Pros and Cons of Cloud-base vs On-Premise

cloud-base crm

Posted on November 4, 2014 in CRM

At this point most of us are or have become very familiar with what CRM is. Cloud computing and cloud software is emerging as a key player in the market, which is allowing more and more CRM solutions to pop up and give users access to their servers. This is becoming an alternative to accessing one’s own business server. There are significant advantages to this new alternative but there are also disadvantages. Here are some things to consider when selecting the right CRM solution for you, whether it be over the cloud or installed.

CRM on the Cloud – Is it Secured?

It may seem much easier to have a cloud-based CRM solution, but this also means that your sensitive data is stored within a secure server in an (usually) undisclosed location. With on-site software, it is installed into your own server and you know exactly where your data is located. This means that you can select the type of security you want to protect your data with, such as adding anti-virus software and firewalls, but even though you have this flexibility, these are all additional costs you have to consider. On-premise software gives users more peace of mind when it comes to knowing where their data is stored but also incurs more costs. If a user can get over the fact that their data is stored elsewhere and has confidence in the security of a cloud-based provider, then this might be the better option for them in terms of cost.

How Mobile is Cloud CRM?

This is where cloud-based CRM undoubtedly shines. You don’t have to worry about only having access to your system at the computer you have it installed on. Any laptop, computer, or mobile device can have access to a cloud-based system, which means more mobility and flexibility for the user on the go. With the addition of mobile applications that complement and collaborate with the particular cloud CRM you’re using, much more becomes possible. More information can be shared with more people in a much faster way. This is essential for catering to your customer’s needs faster and closing that business deal too. On-premise lacks flexibility and mobility. In most cases, the more users you want to effectively utilize your software applications, the more you need to install them on computers and networks. Some on-premise solutions do have mobile applications but many need additional hardware and software in order for them to properly work properly alongside the main stationary device.

How Stable is Cloud CRM?

The need for tech support goes hand in hand with any computer or other electronic equipment. When thinking of where you should be allocating funds within your company, obviously it would be great if you didn’t have to spend a lot of money on IT support. This is where cloud-based CRM might prevail once again, since it eliminates almost entirely the need for additional IT support beyond whatever support they provide. Security threats are an ongoing issue with on-premise software, and this is where a lot of technical support is required. If a company believes that storing their data in-house is extremely important, then be prepared for the additional operating costs that will be present in that company’s budget.

Speed for Cloud-base CRM?

Storage space is one thing you don’t have to worry about over the cloud. Because all the data is being hosted on an external server, valuable space is freed up on your computers, which means faster networks and less time wasted making money. On the other hand, hosting CRM on your own server uses up its limited space. Eventually you will find that additional hardware will have to be purchased in order to keep storing data, which can not only get expensive, but will require additional manpower to get more servers up and running.


It all depends on your type of business and how sensitive your data really is. In any case, choosing a cloud-based system or an on-premise one is mostly up to taste and affordability. One must assess their business needs before making a comfortable decision that is best for their company.

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