| In today's CRM market, a variety of on-demand CRM | | | | on-demand CRM is compelling and seems to offer |
| solutions are available, some extremely popular. | | | | incredible benefits. Yet, an increasing number of |
| Companies are attracted to on-demand CRM by | | | | organizations that tried on-demand applications have |
| convenience and price. On-demand CRM systems | | | | returned to an on-premise solution, and we want |
| can be quick to set up and are unlikely to need much, if | | | | customers and partners to be as informed as possible |
| any, investment in new hardware. The monthly | | | | about the options for cost-effective and mission-critical |
| contract costs can also seem very appealing. | | | | CRM." |
| Though many businesses have taken up on-demand | | | | In the right circumstances, on-demand CRM can |
| CRM however, many are also moving away from it. | | | | certainly be the right solution for some businesses. For |
| On-demand CRM solutions may seem a good fit to | | | | example, can be an ideal CRM starting point for some |
| start with, but businesses can soon outgrow them, find | | | | small and mid-sized companies, enabling them to share |
| they are limited in what they are capable of, or that | | | | and manage customer information across all |
| the business needs a more comprehensive CRM | | | | departments. It's often a quick and easy fit, and can go |
| solution. | | | | a long way in installing a "CRM culture" within a |
| On-demand CRM solutions have their place in the | | | | growing business. What's more, as these businesses |
| CRM market. However, the benefits they seem to | | | | expand, it's straightforward to transfer the database to |
| offer at first glance need careful investigation. While | | | | an in-house CRM system (and migration to on-site |
| on-demand CRM solutions may be faster to get up | | | | Sage CRM is seamless). Similarly Microsoft CRM is an |
| and running than on-site CRM software, they can | | | | on-demand (hosted) CRM solution built with the same |
| often cost more in the long term. In some companies, | | | | code base as Microsoft Dynamics CRM Professional |
| their investment in on-demand CRM solutions has | | | | Edition. It has a variety of options to fit business needs, |
| added up to a higher total cost of ownership - | | | | with the ability to easily migrate data as businesses |
| especially when users get tied into contracts. | | | | evolve. |
| On-demand solutions frequently have limited | | | | So how do you tell if on-demand CRM software is |
| functionality, and are notoriously difficult (which usually | | | | right for your company? Like any other major project, |
| means expensive!) to integrate with other applications. | | | | specify what your company needs from a CRM |
| So, although on-demand CRM solutions may seem | | | | system, what your requirements are, and how you |
| cheap to start with, the price may not always turn out | | | | would like them to be achieved. Don't get distracted by |
| to be as attractive as it first appeared. Paul Petersen, | | | | the perceived benefits that some on-demand CRM |
| Senior Director of the GoldMine Business Unit for | | | | systems initially seem to offer: they may not be as |
| FrontRange Solutions, recently stated "We talk with | | | | good as they first appear. And watch the costs. CRM |
| many companies that learn too late of the limitations of | | | | is a long-term business strategy and cultural shift, and |
| on-demand CRM". He goes on to say "On the surface, | | | | needs to be though through thoroughly. |