Cloud or On Premise CRM: What’s The Difference?

yellow why oncontact question marks light bulb Cloud or On Premise CRM: What’s The Difference?

In the technology world, it seems that everyone is moving toward hosting their data on the cloud. This is increasingly true for Customer Relationship Management (CRM) software as well. There are many reasons for that, which we will review, but there are still plenty of people who prefer to host their data themselves. Let’s take a look at the differences between the two:


This option allows someone else to host your data in the CRM for you offsite. You pay a smaller month-to-month fee for access, but all you need then is the internet and you will be ready to go. You are essentially renting the software in this instance. So, as far as price goes, if you have 10 users at $ 100/month per user, it would be $ 1,000 per month total, 12K per year.

On Premise

This is the option where you host the software and your data on your server. You buy the software outright and you own it. Consequently, there are more startup costs given the need for certain IT infrastructure. However, the price model works different. In an on premise scenario, you would buy 10 users for the price of $ 1,000 per user, as a one-time only fee; this means you pay 10K upfront and are done. By the end of the first year, going on premise will be far more affordable.

Here are some key details to look at when reviewing both:

1: Long term costs

Per the examples above, the on premise software is definitely the cheaper route long-term. But, if you are not 100% dedicated to the CRM you have or if you do not have the right IT pieces in place, it is a good idea to go on the cloud. If the vendor offers both, you can usually switch between the two at any time. Also, there are other ongoing costs that on premise CRM deployments have in the IT infrastructure that will need to be addressed, although they may not tie directly to the CRM software itself.

2: Freedom

When you host the software yourself on premise, you usually need at least one dedicated IT person. But, if you go this route, the options to customize and make changes to the software to better fit your needs can be done at any time, as you see fit. This can be both good and bad; if there are mistakes or problems, the CRM provider will not know all of the work you did to get it to that point. However, you will not have to pay to make changes or get approval like you would if you were in the cloud.

3: Other Needs

When you choose the cloud option, it is a hassle free choice in that you don’t have to get any additional software or equipment to run it. Any problems or issues that do arise, you can have the CRM provider take care of it so you are not burdened with additional work. Beware though, some CRM vendors can charge hefty prices for major changes.

If you’re on the market for a new on premise or cloud CRM software solution, you’re in luck. OnContact CRM by WorkWise comes in both on premise and the cloud. Learn more about our software solutions today, and then contact us to learn more about how our software can benefit your business!

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