How to Decide Between SaaS CRM Software and On-Premise CRM Software

How to Decide Between SaaS CRM Software and On-Premise CRM Software

If you are up to date with the current trends in Customer Relations Management (CRM), it is clear that on-premise solution is less preferable today. With SaaS CRM software, customer relationship management is about to change for most organizations. Cloud offering provide similar services to on-premise solutions with fewer limitations regarding their use.

Therefore, if your main goal is deploying a cost-effective CRM system, the cloud-based system is the best way to go. However, it is important to realize that the fast cheap and easy approach offered by this system has its pitfalls.

Essentially when choosing between SaaS CRM software and on-premise CRM software, you need to factor in the following

  • Cost
  • Customization
  • Integration
  • Accessibility


You require capital investment to cater for hardware requirements, personnel, licensing fees, and occupancy costs for on-premise CRM solutions. For SaaS CRM solutions, you only require an annual or monthly subscription. In addition, you may need IT staff to help with integration and customization of your cloud solutions. However, the involvement of this staff is minimal when compared to on-premise solutions.

Cloud solutions may be the best option when you have no start up capital to manage an on-premise solution. Nevertheless, you should consider the overall cost of operations and cost of ownership for the service. For a cloud solution, the subscription fee is payable for the duration you use the service. Therefore, you will still be paying the fee 10 years down the line. On-premise CRM software may be expensive to implement initially due to on-site deployments; however, you may get a return on your investment after five years when the only costs you will have are maintenance and upgrades.

Customization of the CRM solutions

When you choose Cloud CRM solutions, you are using a system created to serve groups or multiple tenants sharing single, undifferentiated software. However, this multi-tenancy brings about difficulty when you require customization of your cloud CRM solution. A majority of SaaS CRM software products allow customization. Nevertheless, the extent of customization you need doing on the system is limited by multi-tenancy. Therefore, you require customization done on your cloud CRM solutions, you need to consider on-premise CRM software from the beginning.


If you need to integrate current enterprise services and applications to your CRM software solution, you need to avoid SaaS CRM software. Some cloud solutions do not offer integration features; in addition, you may have a security concern when you need to move data in large volumes across the internet.


Regardless of the risks involved in transferring data using SaaS CRM software, the fact that the data is moved via the web provides for accessibility and mobility. The cloud-based CRM software is operated using a standard browser. Therefore, you can use a smartphone or a tablet to deliver the application to your users. On the other hand, on-premise CRM software lacks in mobility, which is essential to field agents as they do most of their business transactions off-site. The only flipside for SaaS on the issue of accessibility is a loss of internet connections, which render the operations of agents who are offsite impossible.

Therefore, when deciding between SaaS CRM software and On-Premise CRM software make the above considerations.

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