Hosting vs Cloud CRM

On-Premise vs Cloud | ClearC2 Manufacturing CRM

One of the decisions you will have to make when evaluating a Customer Relationship Management (CRM) solution is whether you want to deploy the software on your servers at your location (on-premise) or access it from the vendor’s site via the internet. This article will explore and discuss the benefits of CRM cloud vs on-premise.

What is a Cloud CRM

Simply put, cloud-based CRM systems will have servers off site that your team access online (“the cloud”). Simply put, CRM software as a service (SaaS) is a software delivery model where a third-party provider hosts the CRM for the user. These SaaS CRM vendors make these systems available via the internet. The software is licensed on a subscription basis and centrally hosted.  It is commonly referred to as “On-Demand Software”. Why would you choose to use the cloud for your CRM application?

  • Upfront Cost – Having your CRM on a cloud eliminates the capital expense of buying hardware and software and setting up and running on-site data centers
  • Speed – Most cloud CRM services are on demand.
  • Flexibility & Scalability – Being able to deliver more or less computing power, storage, and bandwidth—right when it’s needed.
  • Highly Automated – No longer do IT personnel need to worry about keeping software up to date
  • Reliability – Cloud computing makes data backup, disaster recovery, and business continuity easier and less expensive, because data can be mirrored at multiple redundant sites on the cloud provider’s network.
  • Clouds can be public, private (single company) or hybrid.  Public clouds are most common to application providers since they can host multiple companies.

What is an On-Premise CRM

When you have an on-premise CRM it essentially means you are hosting the CRM. This means you own the servers; the CRM is locally with your business. There isn’t a third-party location that you connect to on the internet, you are working directly off of it. This is useful to have your own IT team maintain and adjust locally.


Choosing a CRM On-Premise vs Cloud

When getting a CRM, you must decide to either have an on-premise or cloud CRM. This decision needs to be based off the needs of your company and what suits you better. Using a cloud CRM can help with not having as large of startup costs and you can adjust the size as you need. An on-premise CRM can be great if you want to own the servers locally and maintain them yourself. Ultimately, it is what works best for you.


Still unsure or have any questions? Contact our expert Charlie Spaneas at