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On-Demand versus On-Premise CRM: There Are Proven Performance Differences

Jamie Grenney Jun 14, 2006

Over the past five years, CRM users have aligned themselves into one of two camps; those organizations that have implemented, administered, and maintained their CRM systems in-house (On-Premise) and those who have leveraged the services of software as a service (On-Demand) solution providers like salesforce.com to meet their CRM needs. According to recent research conducted by CSO Insights, based on user experiences, On-Demand CRM holds the edge over On-Premise CRM in key areas. If your organization is still debating On-Premise versus On-Demand CRM, this independent research by CSO Insights and available compliments of salesforce.com, is a must read.

CSO Insights is a research firm that specializes in benchmarking how companies are leveraging people, process, technology, and knowledge to optimize the way they market and sell to customers.

Over the past 12 years, CSO Insight’s sales effectiveness survey of over 7,500 sales effectiveness initiatives has become the benchmark for tracking the evolution of how the role of sales is changing, the challenges that are impacting sales performance, and most importantly, what companies are doing to address these issues. In their 2006 Sales Optimization survey, responses received from study participants who implemented the leading On-Demand CRM solutions like Salesforce.com were compared with the most widely known enterprise On-Premise CRM systems (Siebel, Oracle, PeopleSoft, SAP, and Microsoft). The results show that On-Demand CRM holds the edge over On-Premise CRM in key areas.

Considerably more firms are achieving significant improvements in performance: 39.8% reported by On-Demand users, compared to 20.8% for On-Premise
Dramatically shorter system implementation times: 59.3% of On-Demand Systems implemented in 3 months or less, compared to 15.6% for On-Premise
Significantly fewer project budget overruns: 76.5% of On-Demand projects on budget, compared to 43.7% for On-Premise
Noticeably higher customer satisfaction ratings: 66.7% of On-Demand users absolutely/very likely to recommend/buy again from their CRM vendor, compared to 34.4% of On-Premise users

The bottom line is On-Demand users’ experiences were more positive. The results overwhelming support On-Demand CRM over On-Premise CRM. To download the independent CSO Insights whitepaper, compliments of salesfore.com, click here: Download cso_insights_ondemand_versus_onpremise_crm_6.06.pdf.

To learn more about the award-winning on-demand CRM applications offered by Salesforce.com please visit our CRM software as a service applications area.

Have a CRM question? AskWendy@crmsuccess.com.

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