On Premise CRM OR Cloud Based (SAAS) CRM

Which CRM Suits For My Business ? ON PREMISE OR CLOUD BASED (SAAS) 

Target Audience: CRM Sales and Pre-Sales team, Business planning to buy CRM product for their business.

There are several factors which determine your CRM implementation solution (either ON Premise or Cloud). 


Cost: The overall implementation cost can be a determining factor. These days organization is looking towards cost cutting measures, so one need to transform their business plans from CAPEX to OPEX model. The CAPEX involved in an On Premise model is much higher as compare with On Demand/ Cloud. On Demand model decreases your CAPEX with OPEX where you may have to pay on per user, data basis. 

IT Resources: You need to have a team to support the product if delivered on Premise by your organization. (This is directly as well as indirectly related to Cost, resources etc.) 

Business Vision: Vision/Planning by the organization. Most of the time organization implements On Premise CRM with long term vision and clarity of complex changing business processes. On Demand or Cloud could not serve heavy customization.

Product fitment: Sometimes you have to choose a product which best fits your current requirement.

Regulatory Norms: Some industries are not able to move to On Demand Model as there are some regulations for example SOX, which does not allow the originations to have their data hosted in 3rd party organization. 

Integration/ Complexity involved: In few cases On Premise applications are not recommended based on the different integration and other requirements as well. Organization is not ready to open the firewall and other security applications so that an external 3rd party application is able to integrate with.

Licensing Cost and User: If you have 3 users … go on the cloud!!!! If you have 1000 users, go on premise. On Demand Or Could cost charge per user license per month. On Premise will ask you to pay upfront cost for the software licenses and few years of maintenance and support.

Complex Business Process: If you have a highly customized CRM, you may prefer to go on premise, because on the cloud, you automatically get the upgrade from your provider, and in some cases, the upgrade could not be compatible with your local customization.  That is raising another point ,when you implement a CRM solution, try to stay as close to the standard as possible.

Control and Ownership: Complete control and Ownership of your CRM using On Premise. Any unexpected outage on Cloud and you can only wait and watch.

Data Security: Some organization not likes to store their confidential data outside which leads to On Premises. 

Interfaces: If you already have your legacy systems and would like to integrate with CRM solution, this also leads to On Premises.  On premise provide greater flexibility to integrate CRM with other interfaces.


Deployment Time: Cloud is quick to deploy while On Premise take long time to deploy.

Infrastructure Cost: On Premise require investment of high end servers and Networks.

Technology Investment: You need good human resource pool as well high end hardware to support On Premise.

Upgrade:  With On Premise it will be you who will decide that when to go with application update while On Cloud you are bound to go with upgrade with product upgrade.


We are waiting for your expert comments, Share your thoughts on any article we will add it in our articles. 

4 comments on “On Premise CRM OR Cloud Based (SAAS) CRM”

  1. Marc Reply

    As a Siebel practitioner for 10 years, I can’t believe SaaS has even become a viable option. I believe it’s much ado about nothing in the context of large enterprises looking to implement a proper CRM solution. SaaS vs on-premise shouldn’t even be a consideration. On-Premise is the THE only answer otherwise the people making the decision are making a very short-sighted ill-informed decision.


  2. Nadz Reply

    Ahhh, someone whose is scared of change. If sales force success does not tell you that some saas is for some then you have been living under a rock for the past 10 years

  3. Deepak Reply

    Is Oracle still selling On-Premises model or completly shifted to On -Demand model with ADF framework ?

  4. Vivek Reply

    Siebel will ever only be a IAAS or PAAS mode , I do not see anytime siebel being pure SAAS . Fusion is already occupying the space. Siebel as PaaS offering can work well for customer looking to go through transformation and be part of overall move to cloud strategy. The consideration listed above still remain same . However TCO would come and play a big role . Paas may not be cheap for large enterprises with intensive workloads

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