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Although hosted CRM companies are mushrooming by the day and the march of SaaS seems to keep moving forward onerously, helped now by the promise of Storage-as-a-Service, the jury is still out on whether SaaS CRM is a good fit for all or can hosted CRM harm your business.

Perhaps the question can be answered better if we have clarity on what CRM offers the best business value.  The type of CRM activity, whether operational, collaborative, or analytical, often decides whether the particular CRM modules should be in-house or hosted. The company approach to data security is another contributing factor.

Hosted CRM offers the following benefits -

• Faster time to value.
•  Easy deployment.
• Frequent updates.
• Cost-effective.
• Often the only alternative for SMBs.

On the flip side -

• You need regular high-speed internet connectivity.
• Over time, the TCO can shoot up.
• Shifting to another vendor may not be easy.
• Data security is always a nagging worry because its not in your control.
• Customization and integration is not always easy.