What are the main differences between on-demand CRM and on-premise CRM?
Paul Greenberg President, The 56 Group A: The differences between on-demand CRM and on-premise CRM are substantial. They are architecturally different, with on-demand CRM being constructed around what is called a multi-tenant architecture – meaning many clients can run off a single instance of the applications/services that reside on a server at a remote site. On-demand applications are ordinarily accessed via the Web. Alternatively, the on-premise versions are each a separate version that resides on a server that sits behind the firewall of a company. The CRM application there is ordinarily accessed via the desktop or some remote connection to the desktop. The on-demand business model is hosted, meaning that the CRM provider is not the company that is using the application but another company that is assuming the overhead — the server maintenance, the data maintenance and the costs associated with that. A company usually pays for on-demand CRM through a per-user monthly subscription
The differences between on-demand CRM and on-premise are substantial. They are architecturally different, with on-demand CRM being constructed around what is called a multitenant architecture – meaning many clients can run off of a single instance of the applications/services that reside on a server at a remote site. On-demand applications are ordinarily accessed via the Web. Alternatively, the on-premise versions are each a separate version that resides on a server that sits behind the firewall of a company. The CRM application there is ordinarily accessed via the desktop or some remote connection to the desktop.
