SMEs Choosing Cloud CRM for Cost Benefits

Adoption rate of SaaS CRM is on a rise, especially, among small and medium businesses. According to a market survey the high adoption rate is specially driven by the cost advantages offered by cloud software solutions. Approximately 60% of the SMEs studied in the survey cited cost as the major factor for choosing web based CRM solutions in their organizations. A Gartner Hype report has mentioned that SaaS adoption is going to be 50% of all CRM adoptions by 2020 and one can safely assume that a large part of these adoptions will solely be based on budgetary advantages.

Since most of the small businesses operate on shoestring fund it is quite an attractive option for them to adopt hosted service solutions. The enterprise legacy software versions are expensive, take longer time to deploy and require a fully functioning IT infrastructure/team to keep them running.

On the other hand, SaaS CRM solutions have:

  • Eliminated expenses incurred on managing IT infrastructure for legacy applications
  • Allowed SMEs to cut back on their dependency on IT team
  • Offered manageable monthly subscription rate based on provisioning and resource usage
  • Eliminated software licensing requirements
  • Offered lower entry threshold-demanding no immediate or upfront investment
  • Ensured faster deployment
  • Offered faster return on their investment
  • Allowed lower Total Cost of Ownership (TOC)
  • Freed them from managing internal server and data storage space
  • Eliminated headache of maintaining and managing software
  • Allowed easy CRM customization options (drag and drop fields, easy edit and delete, template customization and all these can be managed by the user)
  • Offered easy scalable environment where resource usage can be adjusted according to the changes in demand
  • On a whole, cloud CRM is just the right kind of enterprise software solution that SMBs will embrace. It is further affordable for them since the hardware and infrastructure for hosting the services are managed and provided by the vendor. This also ensures that the user gets updated and improved versions of the software regularly. Earlier many firms were found using outdated CRM versions since updating legacy software is often expensive and lengthy process.

    Cloud based client management software offers online data storing and backup advantages. So, you no longer have to worry about taking manual backup of your data. Data inserted is stored in the cloud space and can be accessed by authorized users from any part of the world and anytime during the day. This is of great convenience for the users and allowed businesses to leverage their potential. Moreover, it has ensured better collaboration between teams located at different geographical locations.

    Author Bio
    Patricia Jones is an online writer and market researcher. She takes interest in writing about customer relationship management applications. She has vast experience in writing product reviews and market news.

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    4 Responses to “ SMEs Choosing Cloud CRM for Cost Benefits ”

    1. Brad Hodson on April 10, 2013 at 12:18 am

      I think, in addition to the cost benefits, there are also the psychological benefits of having your data stored in the cloud. No longer do you need an IT just to make sure everything is available and doesn’t crash and die unexpectedly. No longer are you a slave to your intranet provision. No longer do you have to worry about firewalls and protecting your own data.

      Having a cloud CRM just makes everything easier on the mind. You can rest easy, which is a great thing. Gives you time to focus on what matters most (the actual customer relationships).

    2. vince on April 13, 2013 at 4:41 pm

      sounds like a bunch of marketing mumbo-jumbo

      the cloud is notoriously insecure (anyone remember Amazon Cloud’s “massive security flaws?” you don’t even control your own data. vendor management can be very complicated.

      anytime you read something that claims to make you “rest easy” in the IT world – you gotta be suspicious.

      a very very subjective article.

    3. Mike on April 15, 2013 at 7:35 am

      Hi Patricia,
      I totally agree with you on this aspect, as we are witnessing the cloud revolution we can see that many players has emerged offering various services on cloud.
      Even I came to read an article where Complete End-to-End IT solutions on cloud are offered and it was quite interesting to know that these type of solutions are coming from emerging countries like India.
      And the thing is that even most of the IT services are now being offered by this business function model. This was the first time I read about this totally new concept. Would like to know your opinion on this.

    4. Patricia Jones on April 25, 2013 at 7:54 am

      Hello Mike,

      Thanks for your comment. You have shared a pretty interesting link. It’s really nice to see emerging countries are taking the lead in innovation. Cloud is certainly going to be the next big thing and in very near future we’ll find enterprises moving their entire business operation to hosted setup. And, why not? It certainly offers them great cost advantages.
      Pay for the service model however, isn’t entirely a new concept. There are many forms of as-a-service solutions available for every business size. Cloud CRM has really come of age to offer customized CRM solutions( to small businesses as their requirements are very different from large organizations.

      If you’re interested to find out more about cloud based CRM and CRM customization you can always reach out to me.

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