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SaaS CRM or not: What is the main reason you do not use a SaaS based CRM?
I have only used Salesforce.com over the years. My colleague is helping put together CRM requirements for a big company but he said management won't choose a SaaS system. Am I missing something? What are the main reasons people won't use SaaS, particularly for CRM?
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3 Answers
Mary,
Here are some reasons:
(1) Integration with other back office applications (this generally is more difficult with a SaaS solution)
(2) Cost of ownership: In many cases, SaaS is more expensive from TCO perspective
(3) Security considerations: This may be more perceived than reality, but some execs are uncomfortable with their data outside of their physical walls.
(4) Speed: In some cases, a local windows based deployment is faster for the end users than a browser based SaaS deployment
Best regards,
Brian
The PROs with SaaS are..
1. Continually upgraded.. Never have to purchase the next boxed upgrade... Upgrades are real time and continually stay current...
2. Web based SaaS allow you to work from anywhere in the world... You are not 'stuck' to your machine and/or required to keep it on and pay for a pcanywhere (which isn't that a SaaS?)...
3. A great CRM syncs directly to your mobile device, is fully customizable, integrates all communication and activity.. Offers secure data portals with all your clients- Imagine being able to give your client a link & a password to a secure portal instead of trying to email files that are too large and/or too sensitive...
4. i agree with Brian... sometimes speed can be an issue... but a great CRM SaaS over comes speed... and continues to monitor it...
There are several valid reasons why a company may not choose a SaaS product:
They need to store highly sensitive information and are concerned that SaaS providers might be socially engineered. See http://www.zdnet.com/blog/berlind/phishing-based-breach-of-salesforcecom-cust...
Further, if they have operations in Europe, the Patriot act may mean that they are out of compliance with European laws on data privacy
They need tight integration with sensitive back-end systems and this is either technically impossible with a remote system, or their IT department is unwilling to create holes in the firewall that would permit an outside server to initiate actions on internal systems.
They need to transfer large files and cannot afford the delay that results from the typical Internet connectivity speeds of 100kbs - 1000kbs, as compared to internal Ethernet speeds of up to 1,000,000kbs.
They are concerned about the long term financial viability of their SaaS vendor. See http://www.zdnet.com/blog/btl/entellium-executives-arrested-by-fbi-for-making...
They need to modify the core software itself.
They would rather pay a lump sum than monthly hosting charges.
A rigorous process for finding the right CRM system for your company is provided here: http://www.focus.com/ugr/research/crm/how-pick-right-crm-helpdesk-bpm-vendor/
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