CRM hosting – On premise vs Cloud

Companies are now feeling compelled to install a CRM system to keep abreast of the changing technologies and get a better hold on their customer relations. The CRM system which started out as a database to maintain customer records has expanded way beyond its realm. A CRM system is no longer limited to improving the relationship with the customer, but can help businesses with their marketing and in developing new strategies. It helps with market analysis and tracking changing trends.

The Microsoft Dynamics CRM is a leading CRM system which includes a vast number of tools and features that can succour market research and helps in strategizing techniques. The decision to upgrade to a CRM system is accompanied with a number of other choices and decision. Many organisations face a dilemma regarding installing the Dynamics CRM On Premise or going with the MS Dynamics CRM Online option.

The needs and requirement of every organisation varies. Smaller organisations confined to one location may prefer On Premise hosting. They have their own server and everything is under one roof. Large organisations spread over a wide geographical area usually prefer cloud hosting. Both onsite hosting of the Microsoft Dynamics CRM system and the cloud hosting option is accompanied with its own share of advantages and limitations.

 Some major areas of consideration when deciding between cloud vs an on premise CRM are:


On premise servers are downloadable to anyone who has physical access to the server, while a cloud hosted database is highly secured. Some organisations prefer to have their server where they can see it and monitor the physical access to the unit. They employ their own security measures. Online CRM leaves the security concerns to Microsoft. With a large number of organisations working through their servers Microsoft has high security measures in place to protect their customer’s data.


The greatest advantage that most organisations prefer with cloud hosting is that they are not geographically restricted to any location. The database is easily accessible from anywhere. Organisations that have multiple offices spread across the globe find the MS Dynamics CRM Cloud hosting preferable. Cloud hosting is also beneficial for the sales team who can update the CRM while on a customer call. They can also leverage the benefit to accessing information regarding products and queries for potential customers while upselling.

 CRM Customisation

The online version of Microsoft Dynamics CRM allows the same customisation options as the On Premise CRM. There is no differentiation based on where the CRM is hosted when it comes to user interface.

 Data Storage Limit

On premise servers have a data storage limit. The amount of space available is according to the capacity of the Hard Disks installed in the server. Storage space can be increased with additional hard disks at an additional cost. Online CRM offers unlimited storage space to organisations and space is never an area of concern. Systems do not slow down due to limited free space in an online CRM version.

 Technical Support

Some organisations feel that the technical support offered for On Premise CRM is better as they can physically monitor what is being done. However, Microsoft offers an equally good round the clock online technical support. The technical support for the Online CRM and On Premise CRM are similar with skilled technicians on the job. The On Premise technical support comes at an additional cost.

Larger organisations prefer the cloud hosted version for the ease of accessibility that the Online Microsoft Dynamics CRM offers. When it comes to cost there is not much difference in the two. They compensate in different areas. The online version requires you to pay per user while the onsite version doesn’t cost you a dime more for additional users. However the cost of security, maintenance, technical support and server hardware upgrades is eliminated in the online version.

The Dynamics CRM is one of the few CRMs which offer user both options of onsite as well as cloud hosting. Pragmasys technical experts can help you to make your decision regarding the suitable option based on your current setup and future requirements.