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CRM On-Demand or On-Site? A Decision Framework for Choosing the Right Deployment

Trying to decide between on-site and on-demand deployments? Here's how to get started.


Welcome to CRM Options, a custom destination that helps small, midsize and large organizations to understand their on-site and on-demand approaches to customer relationship management.


1. CRM Decisions: On-demand vs. On-site software
2. CRM Decisions: Open source vs. proprietary software
3. Customer case studies: Finding flexible CRM options


1. CRM Decisions: On-demand vs. On-site software


At first glance, businesses are caught in a technology paradox. Many small, midsize and large organizations are struggling to decide whether to deploy CRM (customer relationship management) applications on-site or on-demand. Choose the wrong solution, and you could be stuck with a dead-end deployment.


To be sure, on-demand deployments—leveraging software as a service (SaaS)—continue to gain popularity. More than 20 percent of small businesses, 31 percent of mid-size organizations (100-999) now use on-demand applications, according to AMI Partners, a research firm in New York. In fact, on-demand deployments have doubled since 2004, AMI found. The SaaS approach is particularly popular for companies with basic CRM needs and scant in-house IT resources.


Still, on-site deployments remain very popular within companies that need flexible, customizable software that fulfills compliance regulations. And companies that are already using enterprise software from one of the major suite vendors should evaluate whether there are advantages to adding a CRM package from that same vendor including Six Sigma requirements.


Your Action Item: Choosing how to deploy CRM in your enterprise isn't easy, but this whitepaper provides a road map to issues you should consider such as: Business requirements, IT capabilities, and Security.


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2. CRM Decisions: Open source vs. proprietary software


Open source will comprise at least 30 percent of SaaS application code by 2010, according to Gartner Inc., the Stamford, Conn.-based research firm. The transition to open source, particularly in the CRM market, is easily explained.


With on-site deployments, businesses increasingly want the power to see, edit and develop source code supplied by independent software vendors (ISVs). This approach ensures that a business can fully customize a CRM solution to meet its particular vertical market and customer needs.


In the case of on-demand deployments, application hosts need to continually optimize and enhance on-demand systems. Like a mechanic who can fine-tune the inner workings of a race car engine, SaaS providers can go under the hood to truly optimize hosted open source applications.


Your Action Item: Want to learn more about customers who had to decide between extending an already significant investment, standardizing on one of the many hosted solutions used within various departments or finding a more user friendly on-site solution? Download CRM: On-Site or On-Demand, an exclusive white paper that walks you through the decision process.


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3. Customer Case Studies: Flexible CRM Options


So, you're still undecided: Do you need on-demand or on-site CRM solutions? And what if you want to make the move from one approach to the other? Actually, some CRM customers are discovering that they can make the move from SaaS to on-site, and vice versa.


Power Efficiency, a Las Vegas based provider of energy efficient industrial motors, initially selected to deploy SugarCRM On-Site. A year after the initial deployment, Power Efficiency migrated their instance into an On-Demand account in an effort to lower their IT burden while improving performance and consistency.


Your Action Item: To learn about how companies looked to replace its CRM system, and focused on solutions that it could customize and integrate more cost-effectively than On-Demand CRM applications—download this whitepaper now.


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By the Numbers

Still trying to weigh the benefits of on-site software vs. on-demand CRM solutions? Use this quick calculator to find some clear guidance on which path you should pursue right now.

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