On-Premise Vs Cloud-Based CRM


The on-premise vs cloud-based CRM war has engaged many people in keenly observing the technology and deriving their own conclusions based on their unique needs and perception. However many still rely on the reviews and judgments posted over the internet by people with a “technical nerve”. The advocates of both on-premise and cloud-technologies often get carried away by their prejudices therefore it’s hard to find a truly neutral analysis that can actually help out the novices. Investigating the general pros and cons of both can help one reach an unbiased verdict. Below are the key features of both on-premise and cloud-based CRM systems:


The budget of different organizations allocated to CRM greatly varies but affordable solutions are naturally more desirable for all as long as the quality is not compromised. On-premise CRM solutions normally require big investment funding. Cloud-based CRM solutions, on the other hand are relatively inexpensive.

One-time vs recurring costs:

For on-premise CRM you only have to pay the manufacturer a one-time cost and you get the system deployed with no recurring fees. In case of cloud-based CRM you have to pay for subscription, maintenance and customization on regular intervals.


The on-premise CRM is deployed at the client’s place and the client needs to have dedicated servers where the data can be stores. The cloud-based CRM is hosted in a cloud through a third party cloud service provider and is available for use on the internet.

Deployment and implementation:

Effectively implementing the on-premise CRM doesn’t happen in a day. It takes time to completely integrate it with the client’s business environment and the unique needs of the company. On the contrary, cloud-based CRM is preferred for easy deployment and quick implementation.


In order to draw maximum output from the on-premise CRM you need to have a highly efficient IT staff that can keep it functioning properly. But a cloud-based CRM solution doesn’t require the services of the in-house IT team because of simplicity of use and easy maintenance therefore the budget can be significantly reduced.

Internet dependence:

If you do not have a decent internet connection available 24/7, on-premise CRM is the right choice for you as it works in the offline mode but if you can count on your internet connection then cloud-based CRM can work better given the lesser ratio of downtime complaints as compared to the on-premise solutions.


On-premise solutions can only be accessed within a limited area however cloud-based CRM systems have universal availability as they are accessed through the internet so it doesn’t matter if you are in your office or on the go, you will always be connected with your business.

Data recovery:

If you are a user of on-premise CRM, you have to ensure the safety of your data security and data recovery by maintaining a back-up. In case of cloud there is a built-in security system that frees you from the data security investments.


The major security concern regarding the cloud-based CRM software is that your data is hosted by a third party service provider. But the data in your on-premise system is equally hack-prone (if the drives on personal computer can get hacked, there is an equal chance of data getting stolen from your on-premise servers). The cloud-service providers are often very sensitive about the security due to these concerns forwarded by the users therefore they adopt much better security measures that you can on your own. So in a way it can be claimed that your sensitive data is more secure in a cloud-based solution than the one deployed at your workplace.