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Unformatted text preview: e. For ins tanc e, one c ompany or
department might purc has e an email mark eting management applic ation or a s ales forc e automation
applic ation, while a larger firm might want to purc has e an integrated pac k age that inc ludes a databas e
as well as applic ations for mark eting, s ales and c us tomer s ervic e and s upport (via c all c enters and
online). Obvious ly , the integrated s oftware pac k age is muc h more ex pens ive. Wh at ar e ad v an tag e s o f h o ste d o r o n -d e man d CRM v s. o n -p r e mise an d v ice v e r sa?
In the las t few y ears , the mark et for on-demand CRM has s oared partic ularly among s mall and mids iz ed c ompanies , largely bec aus e of fears about the ex pens e and c omplex ity of large-s c ale on-premis e
CRM implementations . And indeed, on-demand CRM is often a good c hoic e for c ompanies that want to
implement s tandard CRM proc es s es , are able to us e out-of-the-box data s truc tures , with little or no
internal IT s upport, and don’t require c omplex or real-time integration with bac k offic e s y s tems .
However, on-demand CRM s oftware is not alway s as s imple as the vendors would have y ou believe. For
ins tanc e, c us tomiz ation c an be problematic and hos ted CRM vendors ’ API tools c annot provide the
degree of integration that is pos s ible with on-s ite applic ations . Getting a hos ted CRM s y s tem work ing
s houldn’t tak e as long as a traditional s oftware pac k age, but larger and more c omplex rollouts c an s till
tak e a y ear or more. And while the hos ted option reduc es the need for in-hous e tec hnic al s upport,
upgrades c an s till s ometimes be tec hnic ally tric k y . In addition, s ome c ompanies with partic ularly
s ens itive c us tomer data, s uc h as thos e in financ ial s ervic es and health c are, may not want to relinquis h
c ontrol of their data to a hos ted third party for s ec urity reas ons . As a res ult, AMR Res earc h predic ts
that even by 2009, hos ted CRM applic ations will ac c ount for only 12 perc ent of th...
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- Spring '08