If you’re a company researching CRM pricing for your business, you’ll soon discover that there are two basic platforms of CRM: cloud-based CRM and on-premise CRM. To decide which one is better for your company, you must identify your specific needs and goals for the CRM solution.

On-premise CRM software is installed on-site, the licenses are owned, and data is stored on the company server. Cloud-based CRM systems operate remotely, through an internet server, where all data is stored. Licenses are rented each month for a set amount per user.

Typically, the brand of software selected will determine which platform is used for the company’s CRM. For example, GoldMine sales software is an on-premise CRM system, while others, like Salesforce.com are only available through the cloud. In comparing on-premise to cloud software, like Goldmine vs. Salesforce, it is worthwhile to consider the specific advantages of each system before making a final decision Each has their own specific advantages depending upon the company’s individual situation. Here are the typical advantages for using a cloud-based CRM solution:

Cloud-based systems are easy to get up and running right away. That’s why they are a favorite with small, start-up businesses that need to get their sales reps a tool right way.

Cloud-based systems have a limited need for technical support. Since the data is managed and retrieved from the cloud, the company does not have to worry about devoting on-site personnel to technical support.

Cloud-based systems have predictable operating expenses. Software licenses are rented monthly, so it is easy for the company to forecast and budget the operation of the CRM system.

Cloud-based systems have easy remote access. The cloud is easily accessed through the internet, so off-site salespeople can access the data remotely, 24/7.

On-premise CRM systems too, have their unique advantages and are best for certain types of businesses, depending on their needs.

On-premise CRM systems offer greater customization options. Many on-premise CRM solutions go beyond the simple management of contacts to offer specialized features. For example, on-premise software can offer "real time" dashboards, customer web-tracking and software integration and information sharing and reporting with other departments in the organization. Options may be more limited with cloud-based systems.

On-premise CRM systems can use current resources of IT infrastructure and support. This eliminates the need to hire personnel to manage a new cloud-based system and utilizes the current staff and systems already in place at the organization.

On-premise Licenses Are Economical. In an on-premise system, licensing is owned, and can be concurrent, meaning the license can be shared across the user base. Therefore, a company can purchase fewer licenses since they are not specifically assigned by name like they are with cloud-based systems.

On-premise CRM systems may offer greater data security. Many businesses find on-premise CRM more secure since they are able to keep their data behind onsite firewalls.

On-premise CRM Systems Operate Independently of the Internet. Onsite systems provide security from internet hackers and greater organizational control over the data. Access to data is unrelated to the strength or availability of an internet connection.

Ultimately, whether or not a company chooses on-premise CRM or cloud-based CRM has mostly to do with the company’s individual needs and requirements. The more easily the company can identify their needs, the easier it will be to determine which system will be the most advantageous.