Web-Based CRM vs. On-premise CRM Solutions

When your company embarks on a new customer relationship management strategy, there will be a lot of planning to do and many critical choices to make. But perhaps one of the most important decisions is how the solution should be deployed across the business. Do you need an on-premise CRM application? Or is a Web-based CRM solution the right option for you?

Shared Features
Web-based CRM and on-premise CRM solutions share many of the same characteristics. They both offer a comprehensive set of features, providing capabilities that span sales, marketing, call center, and service operations, as well as advanced forecasting, reporting, analysis, and performance management.

Additionally, both Web-based CRM and on-premise CRM solutions provide sophisticated role-based security, and the ability to seamlessly integrate with a variety of other business systems within your environment, including eCommerce applications and ERP packages.

How Web-Based CRM and On-premise CRM Are Different
There are many distinct differences between Web-based CRM and on-premise CRM packages.

Web-based CRM is ideal for any business that wants to automate and enhance their mission-critical customer-facing processes, but that doesn’t have a large IT team or a huge technology budget.

With Web-based CRM, all hardware and software required to support the application are housed at a remote, off-site location and supervised by a third-party service provider. This service provider will also oversee all the work associated with deployment and administration – including installation, integration, testing, and routine maintenance – and store and manage all application data.

Instead of purchasing all the needed components, companies “rent” or subscribe to the Web-based CRM solution as a service, and access and use it via the Internet. Providers typically charge a monthly or annual fee based on application usage.

Among the primary benefits of Web-based CRM are its affordability (since there is no hardware or software to buy, there are no large initial expenditures), ease-of-deployment, and rapid return on investment. Web-based CRM solutions also eliminate the time and labor required for system administration. Since all maintenance is conducted by the service provider, minimal burden is placed on internal IT resources, leaving them free to work on other important corporate technology projects.

Unlike Web-based CRM, on-premise CRM applications require all software and hardware components to be housed by the company that will be utilizing the solution at their own on-site location. The company’s internal IT staff will be responsible for overseeing the installation, integrating the solution with other existing systems in the infrastructure, and managing the roll-out to end-users. They will also have to provide ongoing maintenance, such as upgrades.

There are a few reasons why companies choose on-premise CRM over Web-based CRM. Although they require a major upfront investment, on-premise CRM solutions can offer greater control and maximum flexibility. Any business that wants to keep a close eye on their customer relationship management application and its associated data should consider an on-premise CRM solution. Additionally, on-premise CRM applications offer more in-depth customization capabilities than Web-based CRM solutions, so they are better suited for companies that require extensive modifications in order to support unique business needs, activities, or process workflows.