Beyond the entire process of choosing an actual CRM solution, you need to determine how you are going to deploy your selection. The good thing is you have options. The bad thing is you have options. You can deploy your CRM solution On-Premise, On-Demand (Hosted) or in the Cloud. Each have their advantages and disadvantages, it all depends on what is most important to your business.

Do you need your CRM solution deployed immediately or do you have some time to work with? Do you have an IT staff that can support your CRM solution internally? Would you prefer to pay more upfront or more over the long-term? Do you need to integrate with other systems? Will you require many customizations?

Let's drill down into some Pros and Cons of each.

On-Premise CRM Deployments


  • Greater control of software and hardware
  • Better data security
  • Easier to integrate with other systems
  • Easier to customize
  • Lower lifelong TCO (total cost of ownership)


  • Longer deployment time
  • Requires IT for support and maintenance
  • Hardware requirements
  • Upgrades are done manually
  • Higher initial costs (slower ROI)

On-Demand CRM Deployments


  • Short deployment time
  • No hardware (server) needed
  • No software installation required
  • Does not require IT support
  • Upgrades are automatically pushed out


  • Limited integration with other systems
  • Limited customizations
  • Limited database size and storage
  • Potential language limitations
  • Locked into contract

Cloud CRM Deployments


  • Short deployment time
  • Real-time access to data
  • Access data from anywhere
  • Low initial investment
  • No upgrade fees


  • Data sensitivity/security
  • Limited integration with other systems
  • Requires IT of partner support for server maintenance
  • Software costs (purchase or subscription) AND Cloud hosting costs

It is very important to sit down with your team and decide the best way to deploy your CRM solution, for your particular business. For me it helps to make a list of all my needs/wants and then prioritize them. Bells and whistles are great but if you have to compromise your data security or break the bank to have them, they just may not be worth it at this juncture.

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