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On-Demand vs On-Premise CRM. Walking in the Clouds or Coming Back to Earth? [Infographic]

Tearing apart between on-demand vs on-premise CRM you might feel that mysterious creatures sitting on your shoulders - bright angel and dark evil.

Published: Feb 04, 2022

| Last updated on Oct 02, 2022

| 6 mins read

At first sight, it seems like every made decision might cost you a fortune. You stand at the parting of the ways and try to scrutinize all the pros and cons, dark and bright sides. And one of the toughest decisions on the road to improving your customer relationship engagement is the choice between cloud and on-premise CRM platform. Of course, no one will run to an extreme persuading of selecting some particular customer relationship management system type.

Tearing apart between on-demand and on-premise CRM you might feel that mysterious creatures sitting on your shoulders – bright angel and dark evil. Today, we’d like to cut off these supernatural forces and analyze the advantages and disadvantages of using this or that CRM platform type right-minded.

Playing Devil’s Advocate: Cloud CRM Pros And Cons

Despite the fact that for the last few years SaaS (software-as-a-system) has become all the range solution it doesn’t look so transparent. There are relatively lots of conditions, business models where cloud customer management relationship platform might be more suitable or ill-timed.

Whispering the Bright Sides

  • For Small Businesses Customer, relationship management platform that is run on the cloud network is a perfect solution for a small company and members team. Firstly, it requires fewer IT staff like system administrators and technical support, than on-premise CRM does.
  • Price-Oriented Also, considering the price issue, cloud is more cost-effective. In most cases vendors charges per user, monthly or annually. So, you can see it is suitable for startups and company with the small budget.
  • Overfly Within Departments If your company counts various departments, freelance or the remote workforce, on-demand CRM platform connects them quickly and intuitively.
  • For Speed CRM Implementation While comparing on-demand vs. on-premise solutions, the former speeds up the customer relationship management implementation process. You shouldn’t look for extra resources like hardware or IT staff. Moreover, cloud CRM vendor takes care of platform updates and maintenance.

Itemizing the Drawbacks

  • Low-Security On-demand CRM platform is not secure enough for businesses that specialize in some particular fields like healthcare or those which require more confidentiality and are personal nature related.
  • Dark Side of the Price Sometimes, when the cloud-based CRM platform is implemented for large enterprises, this utility usually turns to be a costly affair. If you have pretty numerous company team and everyone needs the access to a database, it will be rather an expensive spending.

Reasons For And Against: On-Premise CRM

Although cloud customer relationship management platforms are rapidly covering the nowadays market share, there are a lot of reasons why many people give their preference to on-premise CRM type.

Tune in to On-Premise Benefits

  • The solution for Enterprises On-premise CRM platforms are considered to be an instrument for large enterprises because of the fact that for a significant amount of team workers who need access to the database, this solution might be less expensive.
  • Option for Additional Soft Integration Lots of CRM experts tend to advise on-premise CRM implementation in case you plan to integrate it with other software solutions.
  • High-Security Level Comparing on-demand vs. on-premise CRM system, the latter one is frequently used for tightening data security. There are even peculiar legislative requirements that oblige companies to host your own database.
  • Complete Data Control Hosting CRM on your server allows you to take the full control of data, clients’ information, and all the company activities.

Prick up Ears of On-Premise CRM Drawbacks

  • Skilled IT Staff To run on-premise CRM, you should have an expert IT team to support and administrate the platform. Extra Sources You should take care of the hardware and layered software on your own.

Explore this informative infographic and figure out the key differences and peculiarities of the cloud and on-premise CRM systems.



The conclusion turned out to be so traditional – there’s no one-size solution for everyone. To make the only right decision, you should analyze your company's internal relations, and business purposes in general. Also, don’t forget that you may always; migrate from your old updated CRM to another more innovative one to get more productivity and increase revenue. Select your dream CRM platform and make the secure switch with Trujay.

Anastasiia Dyshkant

Marketing manager with over two years of experience effectively managing projects. Adept in using digital marketing tools to increase sales and overall company productivity. I'm responsible for managing the promotion and positioning of a brand or the products and services that a company sells.

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