Over the past couple of years, one of the most common questions we’ve been asked at Concentrix is “
Well, there’s no single answer. Whether you choose to deploy Microsoft Dynamics CRM on-premise or go with a hosted option depends on your business requirements: your aims, objectives, resources, and what you need from your CRM solution.
With hosted CRM (often referred to as ‘Software as a Service’, CRM ‘on-demand’ or ‘in the cloud’), the application and data is held on computers (servers), kept in an advanced data-centre. This means your CRM provider takes care of the running and maintenance of the software and servers 24 hours a day, seven days a week.
However, if you need a high level of software configuration, if you already have your own servers and IT staff, or if you want to fully own your system outright, then deploying Microsoft Dynamics CRM on-premise is probably your best choice. You’ve also got to look at the time it will take to achieve return on investment. CRM should be a long-term business strategy and your investment in hardware for an on-premise solution will usually be recuperated fairly quickly, typically within three years.
Now, here’s an interesting development. One thing we’ve noticed over the past year or so is that small businesses that choose Microsoft Dynamics CRM nearly always start off with the hosted option. In fact, since early 2009, hosted Microsoft Dynamics CRM has accounted for over 90% of Concentrix’s implementations of the product in businesses with between one and twenty users.
So, most small businesses, in the UK at least, prefer hosted Microsoft Dynamics CRM to start with. But it doesn’t stop there. We’re also just starting to see some organisations, having started off with the hosted option, then move to on-premise.
There’s actually a lot of sense in starting with hosted Microsoft Dynamics CRM and then moving to on-premise. Because of the ease of getting up and running, the hosted option is a good way for organisations to trial the product with very little risk. Then, once they’ve established the benefits, understood and demonstrated what CRM can achieve and decided that they will use CRM as a key business strategy, an on-premise solution becomes a realistic option. In the longer term it will deliver even better return on investment. So for many small businesses planning for growth, starting off with hosted Microsoft Dynamics CRM, establishing the benefits, embedding a ‘CRM culture’ before moving to on-premise is an attractive route.
Whatever option you choose, you won’t be on your own. All
If you’re a small business and need further advice about choosing between hosted or on-premise Microsoft Dynamics CRM, we recommend you talk to your local CRM specialist. They’ll take a look at your requirements and provide help and advice about the best option for your needs.
By Concentrix Ltd –