At Tour de Force, we have discussions all the time with sales executives and owners of small and mid-market wholesale distributors and manufacturers, along with sales and executive leadership from major divisions of large enterprises. Two years ago, the response we received when asking whether clients wanted to run their CRM solution on-premise vs. in the Cloud was overwhelmingly on-premise (roughly 95%+ of the time); however, we’ve seen that trend shift significantly since then. Over the past 3-6 months, we’ve been hearing 70%+ of the respondents say they are open to either option which makes most sense for their business, with those who have preference for Cloud CRM vs. on-premise running at roughly a ratio of 75-80% to 20-25%.
What are the main benefits of cloud CRM for clients as opposed to running their CRM solution on premise?
1. Accelerated time to value
By replacing the process of specifying, acquiring, and deploying on-premise IT server and storage with provisioning a comparable Cloud instance, the time to go from project kickoff to go live has accelerated by numerous weeks, which is variable depending on how readily available the client’s IT infrastructure team, if one exists, is to focus on this subject matter. In fact, there have been a number of instances where clients have had to delay projects altogether due to the lack of IT resource availability to focus on the project for an extended period of time.
2. Reduced involvement for IT resources
Because the IT infrastructure and application deployment are owned and maintained by the Cloud solution provider, who provisions what is necessary to support the client and performs application upgrades, the client’s IT resources, if any exist, are unneeded for these tasks. As a result, there isn’t a delay to wait on client IT resource availability to initiate or upgrade Cloud-based solutions.
3. Accelerated access to improved application functionality
Because the solution team’s resources have IT ownership for performing solution upgrades in the Cloud-based model, upgrades are performed on a more frequent basis with more consistent results than when relying on the client’s IT team to perform these tasks. As a result, Cloud solutions can be deployed in smaller functional increments than those that require more enhancements to be rolled up as a release when deployed by the client’s IT team in an on-premise solution model.
4. Improved speed of access, data security and business continuity
Because Cloud CRM solution providers have resources specifically trained in the disciplines of establishing and securing hosted IT infrastructure and associated network access and business continuity with access to the best solutions available in the market, most small and mid-market clients achieve a significant improvement in application performance, data security and business continuity as compared with running the solution on their own IT infrastructure, which requires internal or third-party IT personnel to plan and implement these solutions.
5. Reduced capital expense
There is major competition for capital funding in wholesale distribution and manufacturing companies, especially in the areas of upgrading facilities and equipment. Cloud-based software deployment, where the common software licensing model is based on subscription charges over time, is generally funded as an expense; whereas one-time perpetual software license charges, which has traditionally been the most common approach used for on-premise software deployment, typically requires capital funding.
Tour de Force, whose combined CRM, SFA and BI solution was purpose built for wholesale distribution and manufacturing, offers our clients a choice of running our industry-leading solution on-premise or in a hosted model with Tour de Force Cloud. Please contact us for more information on the benefits if Cloud CRM or to discuss a potential project.