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Is CRM SaaS or On-Premise CRM Software Right For You?
Although the on-premise CRM software market continues to trickle along while the SaaS CRM software market grows at a much more aggressive rate, it is clear that both delivery methods have a place in the overall Customer Relationship Management market based upon each organization's specific needs and objectives.

CIO Insight Perspective
CIO Insight magazine provided some key decision making criteria when comparing SaaS and traditional software licensing.

Consider SaaS if your company has:

  • An expense budget than is larger than its capital budget
  • Limited IT support
  • A distributed workforce
  • A sales- or service-oriented business

Consider a traditional license if:

  • The software requires a great deal of customization
  • The application is tied to a core function of your business
  • You have already invested significantly in internal IT
  • Laws require data to remain behind your firewall

CIO Magazine
CIO Magazine offered their perspective in the debate.

CIO recommends on-demand/hosted CRM systems for:

  • Customers seeking to implement standard processes from a variety of industries and companies
  • Companies that are able to use standard data structures
  • Companies with more basic integration requirements
  • Companies with limited technical resources and support personnel
  • Companies seeking variable pricing and lower up front costs
  • Companies dealing with nonproprietary data

CIO recommends on-premise CRM systems for:

  • Companies seeking to implement highly customized customer management practices
  • Companies that need specialized data structures
  • Companies with complex or real-time integration requirements
  • Companies with available in-house IT resources and support systems
  • Companies can afford the up-front capital investment and recurring fixed costs
  • Dealing with highly sensitive data that you don't want other parties to see

CRM article

It seems particularly relevant when organizations benefiting from licensed software tout the SaaS market growth. For instance, according to Jim Corgel, General Manager of IBM e-business Hosting Services, "The hosted market will grow at 20% annually - that's four times as fast as unhosted software."

CRM quote 10 to 1 CRM quote
The ratio of how much companies may spend on hardware, maintenance and support of purchased software, compared to the initial price.
Source: Gartner

Lastly, we think that former Oracle President & COO Ray Lane said it best, "Software-as-a-Service is an inevitable, fundamental shift in enterprise software culture."

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