| 5 Reasons to Choose Hosted CRM |
| by Clare Kaufman, freelance writer |
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| More and more companies are demanding CRM On-Demand. Hosted CRM eliminates the up-front costs of CRM software and cuts out the IT headaches associated with on-premises systems. And that's just the beginning. Find out why businesses of all sizes are choosing hosted CRM. |
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| According to AMR Research, hosted CRM has been the primary delivery model since 2004. Companies small and large are opting for the convenience, low cost, and agility of web-based customer relationship management. The top five reasons for choosing On-Demand over On-Premises CRM are: |
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1. Lower TCO
"The lower total cost of ownership (TCO) has been one of the key drivers for the growth of hosted CRM solutions," reports business technology journal Silicon.com. The subscription service operates on a pay-as-you-go basis, eliminating the initial investment required by on-premises versions. Hardware-based CRM typically doesn't start paying for itself until after three years. Also included in the TCO estimates are savings in IT support costs. |
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2. Low IT Demands
A hosted CRM system eliminates the need for a dedicated server, server operating system, database, or routers--all the infrastructure that keeps IT busy. Companies no longer need internal IT resources to take advantage of CRM applications, making the technology available to small and mid-sized companies who lack the capital of large enterprises. |
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3. Instant Roll-Out
On Demand CRM is fast, easy, and inexpensive to implement. Since web-based CRM uses the Internet as its infrastructure, there's no need to set up and configure hardware. It's as easy as 1-2-3: find a CRM vendor, sign up, and go live. With no installation necessary, the IT team can focus on customizing the application and integrating it with other software. |
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4. Full Functionality
Hosted CRM has evolved into a rich customer relationship management suite that rivals on-premises systems. Today's on-demand applications offer the same advanced functionality, such as workflow and analytics features. Many providers have also elaborated their offerings in specific verticals. |
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5. Agility
Hosted CRM makes it easy to scale the application to changing business needs. Often, companies can add features or scale the system back using a web interface, paying only for the services they use. Since the hardware resides with the provider, there's no need to engage in costly, time-consuming changes to the infrastructure. |
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| For a growing number of businesses, hosted CRM makes sense financially and logistically. Today's on demand CRM applications offer the same level of functionality without the headache of installations on premises. As long as the company has a broadband internet connection, the necessary infrastructure is already there. Using it to deliver customer relationship management technology cuts costs and streamlines the process. And this sort of efficiency is what CRM applications are all about. |
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Sources
"CRM: Hosted vs Packaged: Which to Choose?" Silicon.com
"The Ins and Outs of Hosted CRM Systems," CRMBuyer.com |
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About the Author
Clare Kaufman is a freelance writer who covers business and education topics. She has a Ph.D. in English. |
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