CRM ARTICLE

What are the benefits and disadvantages of on-premise CRM?

Article by SmallBizCRM Staff – 1 November 2022‍

When it comes to customer relationship management software, there are many vendors who are eager to convince you that their product is the right choice for your company. After all, they’ll argue, isn’t it time you cut costs by switching from a more expensive CRM solution to one that is cheaper and easier to maintain? With so much competition, how can you tell which CRM solution is right for your business? More importantly, how can you know which vendors will offer the best return on your investment? To answer these questions and more, we have compiled a list of the pros and cons of an on-premise CRM system.

What is an on-premise CRM solution?

An on-premise CRM solution is software that runs on the company’s network. The most common type of on-premise CRM system is software that runs on a computer’s server. A CRM system’s network can be a computer network, virtual network, or a private cloud. Once on-premise, CRM software can be installed on a network computer, a virtual machine, or a cloud service. In this case, CRM software runs on a computer’s server, which is connected to all the company’s computers. If CRM software runs on a computer’s server, the software is said to be in-house. If CRM software runs on a cloud service, it is called off-premise.

An on-premise CRM system is software that runs in the organization’s network

There are many advantages to running CRM software on a computer’s server. First, data security is much better with software running on a network computer’s server. This is because the CRM software’s data is stored and transmitted on the computer’s server. Thanks to this, the CRM software is protected from data theft. Second, CRM software running on a computer’s server has access to all the computers in the organization’s network. This means that the CRM software can communicate with all the computers in the network and collect data to provide reports.

Here are the benefits of an on-premise CRM system

  • Data security: With data stored on the CRM software’s network, the software is protected from data theft. Therefore, the CRM software’s data is very secure. If a computer or network is hacked, the CRM data can’t be accessed.
  • Access to all computers: If you have an on-premise CRM system, all your company’s computers are connected to the CRM software. This means that the CRM data can be accessed by all the computers in your network. If you choose to connect computers to your CRM software via a network, you can create a central database for the whole organization. –
  • Central database: When CRM data is stored on a computer’s server, it forms a database. Therefore, with CRM software running on a network computer’s server, you have a database that is central for your whole organization. With one database, you can manage all your customer data.
  • Reporting: If you use an on-premise CRM system, then you can access data stored on the CRM software’s database. You can then create reports that show you all the data collected. With these reports, you can focus on customer interaction, such as sales and marketing activities.
  • Automation: When a computer processes data, it is called automation. With an on-premise CRM system, you have the ability to automate business processes. With automation, you can write programs that automatically handle routine tasks. For example, an automation program can send marketing emails to customers at set times.
  • Mobile data collection: With CRM data stored on a network computer’s server, you can collect mobile data. For example, you can collect customer data from mobile phones and tablet computers. With mobile data, you can boost customer retention and increase sales.

An on-premise CRM system has its own set of pros and cons

An on-premise CRM system has its own set of pros and cons. Some positive aspects of an on-premise system are that data security is much better and the CRM data is protected from threats. Another advantage of an on-premise system is that all the computers in the organization connect to the CRM data. With one database, you can manage all your customer data. An on-premise CRM system has its own set of cons. One con of an on-premise system is that data collection is more difficult because the data is available only on the CRM system’s network. Another con is that the CRM software has to be installed on every computer in the network.

Which solution is right for you?

Before you decide to switch your CRM solution to an on-premise system, it is important to consider your needs. Depending on your business, you may need a CRM solution that is integrated with sales, marketing, and support. Or, perhaps you need a solution that is easy to use. When you’re ready to make the switch, it is important to choose a CRM solution that is easy to use and maintain. A CRM system that is easy to use saves you time. You don’t have to spend time learning how to use CRM software, and you don’t have to troubleshoot software issues. A CRM system that is easy to maintain saves you money. An on-premise CRM system is usually more expensive to implement and maintain because of the hardware and software needs.

Conclusion

As technology evolves, so does the CRM market. In order to stay competitive, companies must continue to innovate and find new ways to connect with their customers. An on-premise CRM system provides a way for businesses to do just that. With data stored on the CRM software’s network, the CRM data is much more secure. An on-premise CRM solution also allows the company to connect to all the computers in the network, which is a great way to boost efficiency and increase sales. With CRM data stored on the CRM system’s network, you can access the data and focus on customer engagement, such as sales and marketing activities.