Benefits and Challenges of SAAS CRM Over On-Premise CRM in 2023

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Getting new customers, keeping old ones happy, and growing an existing firm are all difficult challenges. SAAS CRM solutions and On-premise CRM solutions have arisen to aid businesses in streamlining their relationships with consumers.  

These CRM solutions are accessible to companies of all sizes, both financially and practically but SAAS CRM rules over On-premise CRM. So, let’s have a look at the benefits and challenges of SAAS CRM over on-premise CRM in 2023. 

What is “SaaS CRM” exactly? 

Before delving into the specifics of the SaaS CRM solution, it is important to have a firm grasp of customer relationship management (CRM) and SaaS foundations. The concept of customer relationship management (CRM) was developed to better connect businesses with their customers. 

It has developed into an all-encompassing system that aids businesses in automating their interactions with customers, keeping tabs on them, learning from their actions across channels, and working with them in the most effective manner possible. The eventual aim is to shorten the time it takes them to reach the bottom of the sales funnel and lengthen the time they stick around as customers. 

In the past, implementing a software solution required physically installing hardware on-premises. That is to say, in addition to the cost of computers and personnel, purchasing software would be an expensive endeavor. SaaS, short for “software as a service,” is cloud-based software that can be easily updated and deployed. 

What is “on-premise CRM”?.

An “on-premise CRM” is a tool for managing customer relationships that is managed and run by the client company alone. IT staff inside the company are in charge of handling all gear and software, combining it with other systems, distributing it to end users, and keeping data. IT workers also do regular maintenance like system changes and system control. 

Benefits of SAAS CRM Over On-Premise CRM 

Now that we’ve talked about the definitions of SAAS CRM and On Premise CRM, we’ll talk about why more and more companies around the world are using SAAS CRM.

1. Total Cost Of Ownership 

When evaluating a project, the total cost of ownership (TCO) must be taken into account. Total cost of ownership is lower with SaaS CRM because of the following:

  • You don’t have to pay money up front to set up CRM software and a database server. There are no upfront costs for keeping data safe and getting it back
  • Spending money on things like data centers, real sites, firewalls, access control systems, computer racks, air conditioning, security staff, and so on isn’t required.
  • Administrators of computer systems, databanks, and data centers will not be paid in any way.
  • There won’t be any costs for service, changes, or upgrades to CRM.
  • There were no unrecoverable losses or missed chances because of the changes.

2. Easy & Quick Implementation

Most CRM in real estate and database systems that run in the cloud are already set up and ready to go. Putting in the time and effort to set up and setup tools is a waste of time. 

The only work that needs to be done is when a person is set up and given permissions, and when a new client instance is made. Unlike on-premises software, cloud-based customer relationship management software can be set up in just a few days.

3. Most Up-to-Date Software

Since SaaS CRM is often changed, new features are often made available. Since these changes are sent to users instantly, they are always on the most recent build. There won’t be any downtime, and the customer won’t have to do any more updates.

4. Simple to change to meet new needs

As the needs of your business change, it’s easy to change SaaS CRM to meet them. Because cloud computers are flexible, it’s easy to grow up when traffic or the number of people using your service goes up. You can maximize your use even if you have to cut back on tasks because of work needs.

5. Confidentiality & Easily Accessible Data

You can trust that your data will be secure when you host your cloud infrastructure with a large company like Microsoft Azure, Amazon Web Services (AWS), Google Cloud, etc. These multinationals follow stringent data security rules and have enough protections in place to secure their customers’ private data. It would be very difficult for smaller organizations to keep up with the ever-increasing security standards without making significant investments in IT security.

Numerous precautions have been taken by cloud service providers to guarantee the safety of their customers’ data, including frequent data backups, business continuity plans, and disaster recovery strategies. 

Your information will still be available in the event of a disruption, such as a natural disaster.

Many companies’ server maintenance and repair efforts were hindered by a lack of accessible resources during the epidemic.

For these reasons, many organizations, including some of the world’s top banks and enterprises, have migrated their infrastructure to the cloud.  That way, companies can focus on what they do best without having to worry about data centers, networks, access rules, security, staff, etc.

Zero downtime 

SaaS CRM software never experiences downtime, not even during upgrades. Your customers may get to their information and applications anytime they want, from anywhere in the planet. 

All of the behind-the-scenes tweaks and upgrades are taken care of by the vendor. There is no delay or additional cost to the business since it is broadcast instantly to all employees.

Challenges of SAAS CRM Over On-Premise CRM

1. Limited Power

Since it is fully built, the customer can’t change how it works. The provider’s skill has a direct effect on the quality of the program. The standard plan for shipping can be changed very little, 

2. Slow

Performance isn’t as good as with other client/server applications because data is pulled from a remote source instead of a local one.

3. Fears for Safety

Some customers fear that their data could be stolen while it is saved in the cloud. This is because cloud computing is dangerous by nature. The safety of data is always a problem for anyone who works with it. 

4. Identity theft 

SaaS providers accept credit card payments remotely as a matter of course. It’s quick and easy, yet it makes me wonder about the consequences. The internet has disclosed a surprising number of cases of identity theft. The highest number of cases occurred in 2015, before the present COVID-19 pandemic. An identity management system is available if you decide you need one. 


The benefits of SAAS CRM as a service are many. The widespread interest in the cloud phenomenon may be attributed to its many attractive qualities, including its scalability, low user load, quick and easy access to resources, and low cost. There are a lot of uses for the qualities it provides. 

The SaaS service model is a convenient and economical way to distribute software. This cloud service has the greatest rate of adoption when compared to others. 

SaaS provides businesses with a more streamlined method of sharing and receiving data. SaaS-based CRM is a novel approach to corporate customer relationship management that lowers entry barriers for SMEs. It makes technology easily accessible and intuitive to enable small and medium-sized businesses to place a higher priority on revenue-generating activities like customer service, marketing, and product development. 

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