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Packaged vs. Hosted CRM Programs

By:Richard Morochove

Web-Based CRM Services

If you don’t want the hassles of updating packaged software and performing regular backups of your CRM data, hosted CRM online services could be just what you need. A hosted service lets you access a CRM service over the Internet, using a Web browser to enter transactions. Reports are prepared on your local printer. The CRM applications software, along with your company’s CRM data, resides on a remote server.

The company providing the software as a service will update the CRM software at its end. The process will appear seamless to you. Usually, you’ll just notice a few more options after each update. Similarly, your CRM records will be automatically backed up on a regular basis.

Web services require you to have more faith in the vendor, compared to packaged applications running on your in-house computer hardware. You depend upon the vendor to not only develop the application and keep it up-to-date, but also to maintain a server that delivers a high degree of availability and safeguards your vital company data. You also must have a reliable broadband Internet connection. Broadband is cheap and easy to get in most major population centers, but rural users may balk at hosted online CRM services, given the higher cost and sometimes the lower reliability of their Internet service.