Types of CRM technology



On-premises CRM

Pros...

  • the company explicitly purchases licenses from CRM provider
  • CRM software resides on Company's own servers
  • companies with complex needs this approach

Cons...

  • the company takes care of the cost of any upgrades
  • required complete company's data integration during CRM installation

Cloud-based CRM

Pros...

  • data and CRM software is stored on an external/remote network
  • company employees can access CRM anytime/anywhere, when there exits internet connection
  • CRM vendors charges companies on a subscription basis with option of monthly/yearly payments
  • companies required limited tech/logical expertise or resources

Cons...

  • compatibility issues may arise when data is initially migrated to cloud from company's internal system
  • CRM provider goes out of business/acquired by another company, then companies data might be compromised or lost
  • fees for software can be more costly over time

Open source CRM

Pros...

  • CRM system make source code available to the public
  • companies can enable to make alterations at no cost
  • not required a licensing commitment from CRM vendors

Cons...

  • vendors don’t offer much support for their free versions
  • not available all the functionalities which are offered in paid systems
  • changes/updates from open source software might affect functionality and requires more effort to fix the bugs


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