Hosted CRM
Hosted CRM is delivered by a third party organisation, i.e. your personnel will access the CRM software via the internet. This means that the software and your data will essentially reside on another organisations’ server. This can work extremely well and there are a number of well known vendors that provide this service.
There are a number of advantages. It means that you will not require any form of internal support for your system. Hosted CRM solutions also mean that you pay a monthly cost for the service as opposed to paying for a full licence and keeping it for a number of years or until a newer, more compelling, version is available. Again, this may suit some organisations and comparing the two cost models will enable you to get an idea of the differences.
Finally, you need to consider that if for some reason you can not access the internet, then you will not be able to access your CRM system and data.
On-Premises CRM
On-premises or in-house CRM means that the software package is installed onto your own server allowing users to access the data via your network.
One of the biggest advantages of this set up is cost related if you intend to buy a perpetual or ‘one-off’ licence that may last many years.
Other advantages mean that because the software and the data contained in it resides on the organisation’s server or computer system and not a third party’s, the information will still be accessible to people that are travelling, such as sales people who are on the road. This means that they will not need access to the internet in order to view and update the system.
It also means that you will have greater control over your data, but having said that, it is imperative that a back-up copy is taken regularly in case there are any issues with your network.