When evaluating a software solution it is quite common for the purchaser to look into both cloud and on-premise options. There are pros and cons of each when looking for the right CRM solution in some cases vendors now offer both on-premises and cloud options or a hybrid mix and thus can give advice on how to evaluate all options.
First of all, the customer needs to decide who is responsible for managing the solution and total cost of assessing it. The entire lifecycle of the product must be considered when acquiring a solution which should include: evaluation, acquisition, deployment, management, support and growth.
A standard ‘on-premise’ deployment will use a visualization or physical installation of the solution on the customers own data center. with IT responsible for managing all aspects of the solution: purchasing, installing software and hardware, providing necessary storage, network and data centers needed to achieve global scale, trouble shooting, support, upgrades and work hard to achieve security and compliance as required by the business and regulators.
The ultimate value of the solution should be considered at all times.
With an on premise solution, your IT department would have total control of the server infrastructure, CRM deployment and ongoing support, but obviously with this comes more cost in the long run for your organization.
There is value for both IT and end-user if the solution is online. In a cloud deployment IT staff spend 20% less time on routine service maintenance and they have 2x the amount of time to invest in the IT strategy. Deployments are 3x faster in the cloud therefore 54% more sales staff will adopt the solution in half the time. This can give the users 93% less service down time.
To sum up a cloud offering would mean less time on maintenance, then more time on strategy for IT, thus giving you increased success rate and productivity for end users. This means less service down time for everyone. For an on premise solution, it makes sense to choose this if you already have the infrastructure in place to support it. It is entirely up to the individual organisation what they choose but obviously taking into consideration the points made above will put you on the right road to making the correct choice.
Microsoft Dynamics CRM