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— On-Premise vs. Cloud CRM —

On-Premise vs. Cloud CRM: A Showdown for Business Growth

Unveiling the mysteries of Cloud CRM vs. On-Premise CRM!


CRM software is a must-have application for businesses of all sizes. With its lead to customers, clients and partners, this serves as the main communication point for sales, marketing, and customer service teams, as a consequence of the biggest share of customer-related operations and the ability of customers to access real-time information from the company through a web interface or a mobile phone. But when it comes to deploying your CRM, a crucial decision arises: cloud-based or on-premise?

This blog delves into the world of Cloud CRM vs. On-Premise CRM, dissecting their functionalities, advantages, disadvantages, and pricing structures. We’ll equip you with the knowledge to determine whether your business should take flight in the cloud or establish a secure on-premise CRM haven.

What is a Cloud CRM?

Imagine accessing your CRM from anywhere, anytime, on any device. That’s the magic of Cloud CRM! It’s a web-based CRM solution hosted by a vendor on remote servers. You access the software through a web browser, eliminating the need for local installations or hardware maintenance.

What is an On-Premise CRM?

Think of an on-premise CRM as a software program installed directly on your company’s servers. This traditional approach offers more control over data security and customization, but requires significant IT resources for installation, maintenance, and updates.

Examples of Cloud CRM:

Salesforce Sales Cloud:

salesforce home page

A popular cloud-based CRM offering robust sales pipeline management, lead scoring, and opportunity tracking.

Zoho CRM:

zoho home page

A user-friendly and affordable cloud CRM solution with features for sales, marketing, and customer service.

Freshworks CRM:

freshsale crm homepage

A cloud CRM built for collaboration, offering features like team messaging and activity feeds alongside contact management and deal tracking.

HubSpot CRM:

hubspot homepage

A free CRM with features like contact management, deal tracking, and email marketing automation.


Examples of On-Premise CRM:

 Microsoft Dynamics 365:

microsoft dynamics 360 homepage

A powerful on-premise CRM suite offering extensive customization and integration with other Microsoft products.

Oracle Siebel CRM:

oracle crm

A comprehensive on-premise CRM catering to large enterprises with complex sales processes and high data security requirements.


sugarcrm homepage

A customizable on-premise CRM solution known for its open-source architecture and flexibility.

Sage CRM:

sage crm

An on-premise CRM option well-suited for small and medium businesses with features for sales, marketing, and customer service.


Cloud CRM vs. On-Premise CRM: A Comparative Analysis

Now, let’s put Cloud CRM and On-Premise CRM head-to-head to understand their unique strengths and weaknesses:


  • Cloud CRM: Typically, Cloud CRM boasts lower upfront costs with subscription-based pricing models. You pay a monthly or annual fee per user, eliminating hefty software license fees.
  • On-Premise CRM: On-premise solutions require a substantial upfront investment for software licenses, hardware, and IT personnel. However, long-term costs may be lower for large companies with the in-house expertise to manage the system.


  • Cloud CRM: Cloud vendors prioritize robust security measures to protect your data. However, some businesses may be wary of entrusting sensitive information to a third party.
  • On-Premise CRM: On-premise CRMs offer a higher degree of perceived control over data security. However, maintaining a secure system requires constant vigilance and IT expertise.


  • Cloud CRM: Cloud CRMs are incredibly scalable. As your business grows, adding new users or features is a breeze.
  • On-Premise CRM: Scaling an on-premise CRM necessitates additional hardware and software investments, making it less flexible for rapidly growing businesses.

Ease of Use

  • Cloud CRM: Cloud CRMs are generally user-friendly and require minimal IT support. Updates are automatic, ensuring you always have access to the latest features.
  • On-Premise CRM: On-premise CRMs may require extensive IT support for installation, customization, and updates. User interfaces can be more complex.

Benefits and Drawbacks

Cloud CRM Benefits:

  • Lower upfront costs
  • Scalable and adaptable
  • Easy to use and maintain
  • Accessible from anywhere, anytime

Cloud CRM Drawbacks:

  • Reliant on a stable internet connection
  • Vendor lock-in may occur
  • Less control over data security (perception)

On-Premise CRM Benefits:

  • High level of data security control
  • Extensive customization options
  • No reliance on internet connection (optional)

On-Premise CRM Drawbacks:

  • High upfront costs
  • Requires significant IT expertise
  • Less scalable and adaptable
  • Updates require manual intervention



Cloud CRM pricing varies depending on the vendor, features, and number of users. Subscription fees typically range from $15 to $100 per user per month. On-premise CRM pricing can be significantly higher, with software licenses costing thousands of dollars and ongoing maintenance adding to the expense.


Both Cloud CRM and On-Premise CRM solutions boast positive user reviews. Cloud CRMs are praised for their affordability, ease of use, and accessibility. On-premise CRMs are valued for their customization options and perceived data security control.


Analyze your business and find out what really tackles the issue businesswise and choose the deployment that perfectly fits your needs and goals. The cloud CRM is a sensible option for the companies to select a cost-effective, scalable, and user-friendly solution. The on-premise CRM would be the most suited one for companies with data security that is not compromised and with the need for complex customization.

By closely analyzing the above-mentioned key aspects of the blog made by you, you will get a chance to rationally make a decision and get the CRM solution that pushes your business to fantastic levels!

Ericson Da Silva.

Ericson has been Working on with CRM and Marketing Automation since 2013 with clients all over the US, UK, Switzerland, Norway, China and Spain. If you have any questions or you want someone to help you implement your CRM solution, you can book a FREE consultation here.