quick guide to selecting crm types : crm on premise v/s cloud crm
Post on 16-Jul-2015
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Key Differences
On PremisesCRM
Cloud BasedCRM
Control Complete ownership and control
Little or no physical control
Accessibility
Works on-premises in any situation or environment
Available only within the premises, on designated points
Depends on internet and connectivity
Accessible anytime, anywhere
On-Premises CRM
Hosted CRM
Set-Up
Complex, time consuming process Hassle-free, on-the-fly, done in a few mouse clicks.
Stressful, time consumingproject
Rapid, smooth, seamlessand stress-free deployment.
Requires extensivephysical infrastructure
Does not require any infrastructure, but internet connection
Investment Significant upfront investment Little or no upfront investment
Costs
High upfront costs Little or no upfront costs
Additional recurring costs for staff and maintenance
Monthly/annual subscription model
SUBSCRIPTION
Fixed cost - sunk investment Cost varies depending on sizeof database and number of users
ObsolescenceSoftware / hardware
obsolescence after some yearsThe pay as you go fixed pricing
also converts capital expenditures to easily
manageable operating expenses
FlexibilityHighly inflexible. The required
capacity and functionality has to be decided and installed upfront
Modular – subscribe only to functions required on a
monthly basis. Most providers offer flexible license options
Highly rigid. Very difficult and time consuming to add capacity
Highly scalable
Capacity once added is a sunk investment
Capacity can be added or reduced as required
easily, on-the-fly
Scalability
Customization Enterprise can customize the CRM as required
Extent of customization available depends on selected vendor. Full
featured hosted CRM offer customization options on par
with what can be achieved with on premises CRM
Transformation of Business Process
Does little to address issues of data silos
Force enterprises to move all customer related data to a central depository, thereby
eradicating data silos
Version conflicts can derail the system
Everyone has access to the latest and complete version
of the data iterations
Support Requires an IT team to install, operate, maintain, update, and
repair the CRM
No dedicated IT team required. Lay users can run the system
IntegrationPossibility of deep integration
with other systems and components of the enterprise
Options for integration with other systems limited -
integration may require the enterprise's legacy
applications to comply with a rigid, uniform system
SecurityHighly secure, since there is no need for communication to go
across to a third party. Database is stored locally
Data, even though stored in a private and secure database
moves through internet. Susceptible to various attacks.
Military grade encryption reduces threats greatly though
Ease of use Users need to be trained Minimal training required
Resources Resource intensive Relatively moreenergy-efficient
Suitable for Only large enterprises Suited across the board, especially for small and
medium enterprises
On-premise versusCloud CRM
Quick guide to selecting CRM type
Cost-Benefit Analysis
Security
On Premises CRM Cloud Based CRM
Software and database
Servers andother hardware
Other Resources required to install the CRM
Salary of IT staff required to install, operate and maintain the system
Energy costs to run the system
Cost of managerial time to take care of the system
Cost of server and software obsolescence
Monthly subscription costs (depending on database size
and no. of users)
BIG CONCERNData resides in external servers and is transmitted over the Internet
Hosted CRM security checklist
Physical Security for the Provider's External Data Centers
Electronicsurveillance
Multi-factor access control systems on a least
privileged basis
Trained security guards on 24x7 basis
Environmental systems designed to minimize the impact
of disruptions to operations
Redundancy through multiple geographic
regions and availability zones to ensure uptime
even in case of attacks or natural disasters
Network & Server Security
Built-in firewalls Private Subnets
Access to a small group of administrative
users only
Regular penetration testing
Application vulnerability threat assessments
Network and system monitoring on 24x7 basis
Regular and systematic back-up of customer and
system databases
Deletion of archived backup data after a
certain interval
Quarterly penetration testing performed by
Workwise
Annual penetration tests performed by 3rd
party vendor
1. suyati.com/shift-your-offline-crm-to-cloud2. www.comparebusinessproducts.com/crm/advantages-of-on-premise-crm3. www.forbes.com/sites/louiscolumbus/2012/07/27/gartner-hype-cycle-for-crm-sales-2012-sales-turns-to-the-cloud-for-quick-relief4. www.oncontact.com/crm-software-cloud-vs-on-premise5. www.techrepublic.com/blog/the-enterprise-cloud/comparing-cloud-to-on-premise-crm-choosing-a-solution6. www.business-software.com/article/on-premise-crm-pros-and-cons7. blog.imason.com/microsoft-crm-online-vs-on-premise8. www.oncontact.com/crm-software-security9. www.comparebusinessproducts.com/resources/item/the-untold-costs-of-a-crm-implementation
Reference:
Traditional way of computing
Requires installation in enterprise servers
Too many paraphernalia
Easy to use
Centralization of data
Anytime-anywhere availability
Available through cloud
Subscription model
Simple sign-up procedure
Accessible on the fly
User Acceptance
Research major Gartner estimates that 35% of all CRM implementations are now cloud (SaaS) based, and that this will
grow to over 50% by 2020.
The extent of cloud based CRM adoption varies across CRM software categories
Web analytics95% adoption95%
50%40%
Salesforce Automation: 50%
Configure Price Quote (CPQ) : 40%
35%
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