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Is Web-Based CRM Software the only answer for Small Business?

My company is looking to buy a CRM system in the coming months. It seems like most people I talk to suggest a hosted CRM as the best fit for small businesses (we are small and only have 4 sales reps). What are my options? Is a web-based CRM solution my best bet?

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Mike
Posted on Oct. 19, 2009
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Jason,
It may depend on the scope of activity for which you want to use your CRM solution. A hosted (subscription) service eliminates the infrastructure costs associated with building and maintaining a system in house. However, there are also other options if you already have an existing database (SQL, Oracle, Universe, etc.). CSDP offers a solution that can be tailored for your use -- either hosted or resident. It is very flexible and database agnostic. I'd be happy to send you some additional information if you are interested. You can reach me at mike.ostrander@csdpcorp.com or phone me at 919-241-5181.

Good luck in your quest!
Mike

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Leonardo Canto e Mello
Posted on Oct. 20, 2009
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There are other options besides web based CRM solutions.
The web based solutions are cheap in short term and very flexible if you see what you need and what you get but they may be more expensive on long tem if compared to a installed solution.
I would recommend a study of the company's requirements and go for a small and simple business case checking the different scenarios.

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Seth Koshgarian
Vantage Communications
Posted on Oct. 21, 2009
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Hi Jason,

I would say it depends on what kind of funding you have available to you. If you spend a lump sum now, you may be able to afford a server based CRM and a server to store it on, but web based solutions are usually a simpler route to take.

We have a web based solution for just under $40 a month that has some features you won't see very often for other software of that price.It was designed with small businesses in mind with the idea that with our resources we could put together a flexible yet very cost effective CRM solution.

If you would like, I'd be happy to send some info or demo for you. Hope the search goes well!

(866)353-8357 x 2028
skoshgarian@vantage.com

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Robert Kuhlmann
Posted on Oct. 21, 2009
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Hi Jason,
In many cases, hosted CRM systems can be very practical and cost-effective solutions, especially for smaller deployments (less than 10 users).

There are other factors you should consider, including:
- does the solution offer the flexibility to meet my business needs if they change in 6 months, a year, 3 years?
- does the hosted environment allow me to customize the CRM application to my business?
- are the costs/fees for the hosted solution fixed, or could they increase over time if I need to add more capabilities or features?

Microsoft Dynamics CRM offers a free 30 day trial of their hosted solution. If you are interested, please visit us at http://www.advancedsps.com/products/

Hope this helped...
Robert Kuhlmann
Senior CRM Consultant
www.advancedsps.com
(310) 844-7865

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Simon Gantley
Consultant, Self Employed
Posted on Oct. 21, 2009
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Hosted CRM is probably not your best bet in the long term. I recommend a Hybrid SaaS approach (see http://en.wikipedia.org/wiki/Hybrid_SaaS) that allows you to move the solution in-when needed.

I recently wrote a guide to choosing a CRM system that is available here:
http://www.focus.com/ugr/research/crm/how-pick-right-crm-helpdesk-bpm-vendor/

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Amir Shenas
IT/IS Manager, SBN Consulting
Posted on Oct. 21, 2009
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Jason;

Check out the zoho web site at http://zoho.com. They have a very good hosted CRM, very inexpensive and feature reach. Other SMB productivity tools can be found there as well. Let us know if that fits your need.

Amir Shenas
SBN IT Solutions
http://www.sbn1.com

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Roland Moore
CRM Consultant, RSR Business Consultancy Ltd.
Posted on Oct. 21, 2009
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Web based can be seen as a cheap start up, but if you do not own it do you have the flexibility required, and in the long run is as cheap as the sales pitch says.

There are many different arguments in favour of hosted (web) and on premise solutions, but the top one is always cost however it is important to consider the hidden costs.

People say web based is always up to date, a good point, but can a SME afford to be at the bleeding edge for companies such a Salesforce and Microsoft, sometimes yes and sometimes no.

Access is often quoted next, but all CRM system are now web based or integrated into email clients such as outlook.

Cost hosted is cheap, yes for the basics, add in support, additional storage for your data, document management, ability to add mobile connectivity, additional of line of business requirement (Project management/time and billing/customer feedback, transaction data auditing for compliance), etc. and the costs start to mount, so look at the total cost not just the headline costs, I have often found that after 18 month's an on premise solution start to pay it's way.

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Susan Penny Brown
Enterprise Strategist & Software Selection Consultant, Interim Technical Management, Inc.
Posted on Oct. 22, 2009
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Hi Jason,

I am an enterprise applications strategist and vendor selection consultant. I don't resell anything. I serve my clients by understanding their requirements and scanning the market for the best solution to fit their needs, whether it's on premise or hosted, generic or customized to the hilt to address very complex requirements.

I'd be happy to sort through the unbiased decision-making process with you.

Kind regards,
Susan Penny Brown
sbrown@InterimTechExec.com

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Greg Goodman
Director, Information Systems, Pate Engineers, Inc.
Posted on Oct. 22, 2009
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The thing I find most attractive about a web-based service is the low cost of maintenance, in terms of the support expertise and responsibility you have to assume.

You don't own it, and you don't have to support it. You don't have to buy and maintain a server, keep it patched, keep it secure. You don't have to refresh the hardware in 3 or 4 years. You don't have to buy and maintain the underlying SQL database license or any Client Access Licenses. Or upgrade the CRM software as new updates and upgrades come out. Or perform your own backups, or handle the restores in the event of a system failure.

It's not on your network, so you don't have to manage a VPN to provide your people access to it from outside the office. If you're careful when you're picking your solution, you can use it from anywhere, manage it from anywhere. It's one less thing to worry about in the part of your DR strategy that deals with damage to your compute infrastructure.

Of course, these points each have corresponding negatives to go with them; when you cede control, you also give up your ability to reduce risk with better maintenance, better backup strategies, better management of the underlying systems...

The important thing with a hosted service is to make sure you know what the SLA guarantees you, and where you're exposed. And when that managed service is the repository for your corporate data, make sure you can get your data out - export, download, whatever - anytime you want. If the service provider ever fails to perform, or if you ever decide to move to a different system (whether outsourced or hosted in-house), you want to be able to take your marbles and go play somewhere else.

Hope this helps,

Greg Goodman
IS Director
Pate Engineers

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Luke Tan
CEO, Borneosoft
Posted on Oct. 23, 2009
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Hi Jason,

Hosted CRM would be the best if you do not want to invest upfront on the software and hardware. Software license especially is very costly and someone has to maintain it. Remember that if the software is client based and not a server type, it probably still needs mail server.

Our hosted CRM solution (Borneosoft CRM) comes standard with mail server (you can host your mail address with us as part of the package), contact, calendar and sales management. In fact, our Free Edition comes with 100MB storage with no time limit, so you can try it out with plenty space to go.

The good thing about hosted CRM is that you don't need to worry about software and hardware maintenance or even ISP cost for hosting your mail server. And addition of new software features is always part of the service that hosted CRM usually offers.

One of consideration of hosted CRM is cost. You first need to check about storage provided because although initially you don't need much space but over time you need more and it can be costly. Borneosoft gives 1GB storage for standard edition. And although other might even charge for 100MB storage, we are giving it away free and no time limit.

In terms of product feature, you need to find software that really covers your most of your needs and it should be easy-to-use and familiar interface to you. And remember to check whether the documentation/guides is available to help you to use the software in day-to-day usage. Sometimes the small things that you need to do it so often really that makes different. If with the help of the software you can do it efficiently and effectively, that is something that you should look for. For example, you can search contacts or any other data in our software like you do search in Google using simple text. You can also arrange a meeting or event and set automated RSVP in Borneosoft CRM.

I hope this can help you in making your decision. Please check out at http://www.borneosoft.com

Kind Regards,
Luke Tan
luke.tan@borneosoft.com

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Paks
Posted on Oct. 26, 2009
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Jason,
I think so. It is very cost effective.What I have observed so far is - on demand vendors are effective in only certain CRM components. Salesforce is best suited for Sales, Rightnow is a leader for Customer service. On demand Siebel has good presence in sales, service, and marketing. I would suggest looking at Gartner's Magic Quadrant for effective on demand web hosted CRM leaders.
With very small workforce I would say for you - pricing will be an issue. On Demand web hosted Rightnow CRM caters to small and mid size business segments and their pricing model is very competitive.
Regards,
Paks

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M Scott Schaffernoth
Chief Tech Coach, Winnovative Technology Consulting, LLC
Posted on Jan. 2, 2010
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Jason, being that you are a small group, there is a good chance that your overall data set size is not going to be massive.
That means, your company might be able to leverage its existing server infrastructure - very few small businesses are fully utilizing the server hardware they currently own.

Purchasing an on premise solution avoids the ongoing expense of monthly fees. Regarding online fees - some of the online solutions require a contract and payment for a year or more in advance - think Salesforce. That negates the supposed advantage of not needing a lump sum up front.

A good on premise solution will provide a lot more flexibility in the ways that you can implement the system.

One possible solution to consider - Act! by Sage - can be implemented as a Windows 'fat' client solution with support for remote/traveling users, publishing the App via Citrix or Terminal Services and also as a web version. You can mix and match any or all of these options in the same implementation.

There are numerous other advantages of on premise in many cases, but these are a few additional considerations.

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