Cloud and On-Premises CRM-ERP Systems: Which One to Choose?
Effective business management is becoming a key factor for success for companies of any size and industry. In this context, CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) systems play an important role in helping businesses optimize their processes, improve customer interaction, and ensure stable development.
At the end of the 20th and the beginning of the 21st century, the use of CRM and ERP systems in business became widespread, especially among large corporations. However, with the emergence of new technologies and increased availability of information resources, these systems have become more popular among medium and small enterprises as well.
In this article, we will discuss why CRM and ERP systems are becoming essential tools for modern companies, how they impact business efficiency, and how their implementation contributes to the development of companies in competitive environments.
Difference between On-Premises and Cloud CRM-ERP Systems
On-Premises and Cloud platforms represent different ways of using software. These two approaches have their differences in deployment, management, and software accessibility.
On-Premises Solution: This is software that is installed and run on the servers of the company using it. The user has full control over the infrastructure, and data is stored on their own servers.
Cloud CRM: This is software deployed and operated on a cloud provider's infrastructure and accessed via the Internet. Data is stored on the provider's servers, and users can access it from any device with an internet connection.
The main difference lies in where the software is deployed and where the data is stored. On-Premises solutions require the installation and maintenance of their own servers, while cloud solutions utilize the provider's infrastructure, reducing costs on equipment and support.
CRM - ERP in the cloud: pros and cons
CRM and ERP systems offer new opportunities for companies, but along with this, there are certain challenges. Using ERP and CRM in the cloud has its advantages and disadvantages, which are essential to understand to make the best choice for your business.
Advantages:
- Scalability according to the company's needs without requiring additional hardware or software.
- Access from any device, anytime, anywhere there is an internet connection.
- High level of security ensures data protection and confidentiality.
- Cloud CRM and ERP systems often offer a flexible pricing structure that allows companies to pay only for the functionality they use, reducing overall costs.
- Easy integration with other software tools.
- Dependency on internet connection.
- Companies may feel limited control over their data as it is stored on cloud provider servers.
- Possibility of service failure. A cloud platform failure can lead to data loss and business disruption.
On-Premise CRM - ERP: pros and cons
Another type of software for managing customer relationships and enterprise resource planning is CRM-ERP in a box. To help you make an informed decision for your business, let's look at what to consider in this case.
Advantages:
- Full control over the software as it is installed and operated on your own servers.
- Local data access provides greater security and control over data.
- Independence from internet connection makes on-premises CRM more stable in case of network failure.
- Customization flexibility.
- High maintenance costs.
- Complexity of installation and setup.
- Users may face limitations in accessing data from outside the office due to the lack of mobile access.
- Lack of backup and security measures can pose a risk of data loss in case of hardware or software problems.
Ease, Efficiency, Security: What LBS Cloud Offers
The LBS Cloud platform operates in the "cloud," providing quick and convenient access to necessary resources via the Internet. Users can access the required software and data from anywhere and on any device with an internet connection. The flexibility and scalability we offer allow resources to be easily adapted to their needs and modified according to business growth.
LBS Cloud employs modern encryption methods and security mechanisms that ensure a high level of security and user data confidentiality. Regular updates and monitoring effectively help prevent potential threats.
Conclusion
The choice between an on-premises solution and a cloud platform depends on the needs and nature of the specific business.
On-premises CRM is suitable for large corporations, companies with large volumes of data and complex processes, and for companies dealing with confidential information, as the data is stored on their own servers. Also, in the long run, an on-premises solution may be a more advantageous option for businesses that can afford significant expenses on equipment and technical support.
For small and medium-sized enterprises that are experiencing rapid growth or have fluctuating needs, a cloud platform is the better choice. Instead of incurring significant costs for hardware and technical support, it allows businesses to pay only for the services they use, reducing expenses during the startup phase. Additionally, cloud-based CRM is ideal for teams working remotely who require access to data from anywhere and on any device.
For small and medium-sized enterprises that are growing rapidly or have changing needs, it is better to use a cloud platform. Instead of significant expenses on equipment and technical support, it allows paying only for the services used, reducing costs at the initial stage. Additionally, cloud CRM is suitable for teams working remotely and requiring access to data from any location and device.