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Cloud based vs. on premise CRM software

Cloud based vs. on premise CRM software

After understanding the importance of a state-of-the-art CRM software, the next point on the agenda is to find one that meets all your business needs and can be aligned with your long-term growth strategy. There are many points and features to compare, but one of the main things you should decide is whether you want a cloud based CRM software or an on-premise one. Although the features of the software might be the same, the distinction between cloud and on-premise is very important because, as you will see below, solutions such as offer convenience in many situations.

Installation and technical requirements

The first difference between cloud based CRM software and on-premise CRM software is that the former is hosted by the provider (this is why cloud CRM is also known as hosted CRM), whereas the latter needs to be installed on your company servers and you will be the one in charge of maintenance. With cloud solutions, however, all data is accessible via the web and you do not have to worry about maintenance. CRM maintenance means that you would have to invest in:

  • IT experts to set up and manage the software
  • New infrastructure
  • License for the CRM software
  • Tech support


Because cloud CRM solutions are handled by the provider, they are much more affordable. You do not have to pay software licensing fees, the set-up costs are much lower and, as previously mentioned, no additional infrastructure and staffing investments will be necessary. Cloud based CRM software such as bpm’online is paid monthly, depending on how many users you have.



In this day and age, business owners should not be expected to manage CRM processes from one platform only. Fortunately, cloud CRM can be accessed from multiple platforms, including mobile. This way, you have a clear overview of customer relationship management and can take action even when you are on the go. All data is synchronized across multiple platforms in real time, so you will not be slowed down and your productivity will not be affected in any way.


There are many vendors of cloud based CRM software available: bpm’online, Microsoft Dynamics 365, Salesforce, Infusionsoft, HubSpot, just to name a few. Although their features may vary, what they all have in common is safety. To make sure your data isn’t leaked or accessed by unauthorized personnel, cloud CRM developers apply extra layers of security.

Although on-premise CRM software is still being chosen by large enterprises who can meet all the financial and infrastructure requirements, cloud-based CRM is catching up, not only in terms of security, but also in terms of flexibility. Most modern CRM vendors are constantly enhancing their software products, in an effort to meet the needs of small, medium sized and large businesses. Cloud CRM solutions are the future of customer relationship management and, considering the fact that they can be scaled up or scaled down to adapt to your company activity, investing in them truly is a wise choice.

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Written by Alice Walker