On-Premises Vs Cloud-Based CRM


Kudos, your business reached this stage when you need CRM. There are multiple CRMs available in the market today that offer a huge variety of modules, interface, report, making the worth of every penny you spent. However, the enduring debate superiority of on premise and cloud deployment is still not ended. Yet the conclusion is ambiguous.

Before jumping into conclusion on who defeated whom, let us figure out the strengths and weaknesses of each deployment.

On-Premises CRM

Well, some organizations do not want to depend solely on the third party for their CRM solution. On-Premise is perfect for companies that hold confidential data like the ones in the financial sector, the government sector. In this, security comes with demands of deep pockets, as your company needs to invest in a comparatively big amount in set-up and maintenance and other customization costs. You also need a separate IT department that maintain and assist in licence purchase and other software programming.


  • On-Premise is costly yet it is worthy as an organization will get power steering on all CRM data and get the freedom to plan updates.
  • Security is at another level and you need to agree on this that you never get worried about getting your data stolen, as you are not tied up with any third party.
  • You do not need to put extra thought on expanding your customer service team, as you are investing in your CRM software rather than paying to the vendor as per the number of users.


  • It is available for the limited device, which minimizes the opportunity to stay connected always.
  • The maintenance and updating bills can give dent on financial year for small business
  • Messing up is not an option for your IT team, because your organization owns the platform and you will not able to take help with CRM vendors
  • Mostly mobile application works on the cloud server which creates hassle if you want to build an app for mobile Phone

Microsoft Dynamics is one of the most popular CRM based on on-premise deployment.

On-Premises or Cloud CRM. Confused?

Cloud CRM

Let’s face it, managing the customer relationship data, working on updates is not a cakewalk, especially when your organization is at its growing stage where you get the promotions and revenue in bits and pieces, and every bit does matter. Cloud CRM is becoming the choice of organization in the last decades.

In this, your company needs to deal with a CRM vendor that may not be available with you physically all the time but available on servers so you can reach out to them anytime. You can always communicate your CRM updation needs as per customer and company priority and tailor the CRM to make the process more effective.


  • As Cloud CRM hosted by vendors, you do not need to face nightmares of receiving huge bills for maintenance and set-up charges.
  • The updation process is quick as deployment is taken over by service providers. In addition, you need not worry about the cost of IT infrastructure, as the vendor will take care of any technical glitch, updating of CRM, editing of an existing module.
  • Staying in touch becomes easy with Cloud CRM, as the information is saved on cloud server, which you can access this anytime on any device.
    Most of the mobile application works on the cloud server which gives the real opportunity to make your Mobile application and launch it on app stores.
  • Cloud server gives you the monthly subscription that is best for small business; also, your vendor is responsible for any kind of maintenance. Just as if you are getting the double on every penny you spent.


  • Though you think, everything is well balanced however; you still need to rely on another server to get access to complete data.
  • You need to take approval and downtime for the customization process that may affect the efficiency of your work.
  • CRM process is not spontaneous as it is supposed to be. You need to contact your CRM vendor helplines every time you need to fix anything or for updates.

SalesforceZoho, Freshdesk, SuiteCRM, Sugar is one of the CRM based on the cloud server interface.

Choosing an ERP system is surely a decision to take a long period of cogitation. Both deployments come with its pros and cons but there are a set of needs that you need to put in wish list before purchasing any software.

No kidding, but your business demands blood and sweat to grow and you need to be available every time. Such scenarios demand to increase the accessibility of CRM from almost every configuration device. A cloud server is an answer in case if your business is on this phase. On-premise is the company’s own software which is why you will not able to access the data on any server, your team needs to stick on their desk to handle the task.

IT demands

You need to be more cautious about your spending and investments. You cannot invest in assets more than liabilities. Having a separate IT team surely could blew off the IT issues but will cost you loads. Owning an on premise deployment, you need to have a dedicated IT person. While being in Cloud server connection, you can contact your vendor for glitches and IT solutions, CRM updation. You just need to pay an additional amount for subscription or customization you demand.

Keep Count of Your PENNY

So here when we are rattling about the maintenance and customization cost, how can we leave set up cost untouched. No matter how gloomy it sounds but you need to stick to your pocket. Quoting the fact, the Cloud CRM server costs you much less than On-premise. Cloud CRM server only cost you the monthly subscription fee that too on the basis of the number of users. Whereas in On-premise, no doubt you just need to pay a one-time purchase fee for the software, but then after you need to pay for setups and pay to the IT department who look after the work.

Apart from these Cloud-based CRMs are easy to customize and deployment time is less. A business can grow if it is flexible to fulfil customer needs. You need to look for the customization process of each interface, there is no second thought, that in on premise you can decide the updation and work on that but the deployment may take longer to update and in Cloud, you are dependent for downtimes and updates.

Are you still confused? Contact Us.

It is okay if you are muddled up between these two servers. Chaos between the servers are never-ending. Our expert’s scrutiny of different server performance will help you with decision and are ready to help anytime you want. Contact our experts to get rid of this humdrum geekspeak and to choose wisely.

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