Question

What is the difference between on-premise and cloud-based CRM?

By tejas_ambekar ·
Tags: Cloud
Many companies use on-premise and some of use cloud-based CRM. So what is basic difference between them?
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All Answers

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Difference between on-premise and cloud-based CRM

by stephenchongsg In reply to What is the difference be ...

Well both type of softwares can have same functionalities if they are designed in that manner. The advantage of using on-premise software is that you don't need an internet connection and are pretty fast as the data is available in the same system, but in case of cloud-based apps an internet connection is required and the working of the software depends on the internet speed and network. Moreover the data is protected in the cloud storage which protected against theft.

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Difference between on-premise and cloud-based CRM

by sithembile1998 In reply to What is the difference be ...

The basic difference between on-premise and cloud based CRM is where your data kept. In on-premise system you have installed the software on your PC or server and you are managing it. In cloud-based CRM the server owned by the CRM host, which accessed through internet connection.

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Comparing Cloud vs On Premise CRM

by alexbarnes590 In reply to What is the difference be ...

Cloud CRM:
A cloud service is any service that a user may access via the internet. The actual program and servers are not located locally but rather available on the servers of the service provider.
On-premise CRM:
These are CRM solutions that are built by a company for their own usage. Some companies prefer not to let a third party vendor handle their data. This is especially true of companies handling sensitive information such as banks and insurance companies.

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Customer Relationship Management (CRM)

by Ayshwarya Jayaprakas In reply to What is the difference be ...

On-Premise CRM software is a tool which runs on the computer within the premise of a person or an organization. Usually, the On-premise CRM software comes with a well-customized way. Few small organizations prefer on-premise CRM as it provides complete control over their data and the system. Creating a disaster management system along with the on-premise CRM can be helpful in backing up the data even after some natural disasters. Most of the banking sectors and insurance companies prefer on-premise CRM. It is too costly when compared with a cloud-based CRM.
Cloud-based CRM means the CRM tools and software resides in the cloud. They access and deliver the results through the internet. They cannot purchase cloud-based CRM, but they subscribe to it. The organization cannot claim for an ownership or license, but they can rent it.
Comparison between on-premise CRM and cloud-based CRM
Cost
Cloud-based CRM costs way too lesser than an on-premise CRM. The on-premise CRM includes installation (hardware and software), license cost and server space. Sometimes, the need for additional sources may also occur. In cloud-based CRM, there are no installation or license costs. As it is resource based, you can pay for what you use.
Customization
The software vendor customizes and deploys the on-premise CRM software. Deployment might take a long time. In cloud-based CRM, they are available in the app store publicly and easily accessible.
Hardware
In a cloud-based CRM, both hardware and software will be the responsibility of the vendor. In an on-premise CRM, it is customer responsibility.
Control
The organization has complete control over the data and the system in an on-premise environment whereas in cloud-based CRM the SAAS provider controls the data.
Access
They can access the on-premise CRM software within an organizational area. Mobile accessibility is vendor and software dependent.
They can access the cloud-based CRM through browsers using the internet from anywhere. Mobile accessibility is readily available.

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The other thing to add is

by OH Smeg In reply to Customer Relationship Man ...

With On premsis you control your data and there are industeries that have to do this things like Medical needs to control Patient Data and not put it into a space where it is controled by another company who may not follow the rules in your country.

In the Cloud your Data is controled by another and it can be argued that you do not even own this data if it came to something nasty happening. In a case like that you would also then be libel for what ever the Laws in your country are relating to Customer Data. It could very easily be argued that you gave the data away to the Cloud Provider whom are generally in another country so you sent the Data across Borders and flouted any Local Laws that you have to comply with.

Also as Cloud Providers tend to Garantee availability they store this data in different places which generally speaking are in different countries so that if something was to happen in your country like a wide spread flood you can still access your data if your location is unaffected or your temp business premsis is unaffected by floods.

In some instances Cloud Storage may breach Local Laws and leave you libel for Proscutition from the State or Litergation by any adversly impacted clients.

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