On-Demand Vs On-premise solutions

[Former Member]

Hi Gurus,

Can any one tell me difference between On-Demand and On-premise solutions?

Thanks, Rashmi

[Former Member · Accepted solution]

Hello Rashmi,

A simple way of thinking of On-Demand solutions is that you as a customer don't own the software or the hardware that the software solution runs. You would pay for using the software.

On-premise solutions are software solutions that you install and maintain on your own. So you have ownership of the software and the hardware the software runs on.

Well there is lot that I can write but I think this is the fundamental difference between the two concepts.

Cheers, Gaurav

[Former Member · Accepted solution]

Thanks Gaurav.

Can you tell me whether the decision for Ondemand or onpremise would depend mainly on company size/revenue? Is it possible to switch between these solutions?

[Former Member · Accepted solution]

Deciding on which one to go with could depend on various factors, size of the organization is just one of them.

And yes it is usually easy to switch from on-demand to on-premise. Moving from on-premise to on-demand is rare.

Cheers, Gaurav

[Former Member]

Hi,

i think that On demand CRM solutions do not need any large upfront investment as there only require a monthly usage fee per user; no database or internal network set-up, no update or maintaining costs.On-demand is particularly compelling for companies with little or no internal IT resources.

On premise CRM solutions on the other hand requires huge upfront investment for purchasing and implementing software, they need maintenance, periodical update and manual or instructed data backing-up. On-premise may provide a more effective solution for companies with internal IT staff where the additional support requirements can be integrated easily into existing internal service level agreements.

So on demand solutions suit businesses with limited users and on premise solutions suit those with more predicted CRM users.

Hope it will useful.

Hemant ghiya