Cloud-Based vs. On-Premises CRM Solutions: Pros and Cons

One of the most important tools to streamline business processes is working with customer relationship management tools. By utilising CRM, you can maximise the business potential and deploy automation in your business. With the help of a CRM Solutions, you can keep track of every lead and manage it effectively. There are many Salesforce partners UK that are preferring on-cloud infrastructure but you should choose one based on your business requirements.

The CRM can either be on the cloud or on-premise. There are many reasons to go with cloud solutions as you can cut costs and enable remote availability of your resources and data. Moreover, on-premises data can also be helpful if businesses are looking to meet regulatory requirements and work as per user needs.

What to Choose: Cloud-Based or On-Premises CRM Solutions

CRM is used by more than 65% of companies as it is a good marketing strategy. Additionally, it can be used to manage customer data and lead lifecycles. Based on your preferences and needs, you should consider if you need a cloud CRM or an on-premises one.

Pros of Cloud-Based CRM

Here are the top advantages of using cloud-based CRM for your business:

  • With on-cloud CRM, you can save on costs as there is no need to have a high implementation hardware and maintenance cost involved. In cloud-based solutions, the hardware and CRM are hosted by a third-party vendor.
  • There is no maintenance cost with cloud-based CRM solutions.
  • If you want to deploy the CRM quickly and want customisation, it is only possible with the help of on-cloud implementation.
  • It is easy to upgrade the CRM and eliminate any technical issues easily. These upgrades can be implemented easily without any active internal involvement.
  • Businesses can access the data from anywhere with easy access from the on-cloud CRM.

Cons of Cloud-Based CRM

There are some disadvantages of CRM as well. Here are some of them for you to consider:

  • Businesses do not have complete control over the system and data as the data is hosted on the server of the third-party vendor.
  • Upgrades and updates are not in the hands of businesses and it happens with the business.
  • There can be downtime when the server is upgraded to the cloud. In the case of maintenance, your work can also get affected.
  • You need to contact the vendor if there are any issues with your CRM and can not fix anything on your own.

Pros of On-Premise CRM

If you are thinking about using the on-premise CRM, here are some advantages:

  • With on-premise CRM, you can gain complete control of the system and data. You can also customise the way you like and manage the updates as well.
  • There are very thin chances of data theft and cyberattacks with on-premise CRM. Data on your infrastructure is under your control, not hosted anywhere else.
  • You can save money with the on-premises infrastructure of CRM as on the cloud, you need to pay per user.

Cons of On-Premise CRM

Here are some disadvantages of using an on-premise CRM:

  • When there is a need of using the CRM from a remote location, it is not possible with the on-premise CRM. It only works where the hardware is.
  • It is not mobile-friendly as most CRMs work on cloud servers.
  • If you want to add features and upgrade your CRM, it can be challenging as deployment can be very costly.
  • This can be a costly investment with hardware maintenance and heavy upfront costs.

On-Premise vs Cloud-Based CRM Use Cases

Here are some of the considerations to make while choosing the most suitable CRM for your business needs:

Number of users

You should use on-premises CRM if you have a small number of users with access to CRM who aren’t working outside of working hours. In contrast, cloud CRM should be utilised if you want to work with CRM after working hours in a different location than your digital infrastructure. It offers all-time access and comes with a mobile-friendly option so you can use the functionality of CRM from anywhere.

Data security and transfer

In on-premise CRM, the data is stored by the business itself and data transfer is secure with strong security infrastructure. However, in the cloud-based CRM, data transfer and management are dependent on the third-party vendor. If the data is handled properly, there are very few cases of data leaks and cyber threats.

IT support

With on-premise CRM, you need to have a strong team to manage the infrastructure and maintain the peak performance of the CRM functionality. Moreover, you can eliminate these costs and save on your business expenses with the help of cloud-based CRM as it is done by the servicer provider vendors.

Leverage the CRM Based On Your Needs

You should get the CRM based on your needs. As cloud-based offers scalability and comes with way cheaper plans than on-premises infrastructure. You can choose the best platform like Salesforce for the best services and if you have other considerations in mind, you can consider alternatives to Salesforce. It can help you make a result-oriented decision for your CRM needs.

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