Both these CRM software have their merits and demerits and may suit a company’s data management requirement depending upon a particular business’ need. Here are a few major distinctions between cloud and on-premise CRM software:

  • The major variation between cloud and on-premise software is the location of the saved information. As discussed earlier, cloud CRM stores data on the CRM service provider’s server which makes the data more secure whereas on-premise CRM stores data on your company’s own server which lets you monitor any malicious activity and take proper measures to secure the data.
  • On cloud based CRM software, information can be accessed on a go as well unlike the on-premise CRM which can make the information accessible only on the company’s server and computers which are connected with it.
  • On cloud CRM offers unlimited space and thus frees your computers a lot of space by saving all the heavy data on the service provider’s server while in case of on-premise CRM your server is loaded with all the data making the work slow and cramped space in computers.
  • Cloud CRM gives the opportunity to use the technical support of the CRM service provider whereas in the case of on-premise CRM, you might have to contract a separate technical support team to handle the issues related to security of your data and server.

However, the decision to choose cloud or on-premise CRM system depends upon the particular needs of a business. For example, if a company wants to save their data locally so as to restrict its access due to security concerns then they might want to go for on-premise CRM but this option does not provide the benefits of a cloud based CRM system which lets unlimited access along with lightened server and steady tech support.

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