Cloud CRM vs In-house CRM

CRM software is projected to become the biggest investment companies will make in the five-year period between 2025 and 2030.

In the near future, the CRM software market is expected to rise to about $35 Billion by the year 2023.

With so much money coming in, there are a lot of options available. One of the many choices that small business owners will have to make is choosing between a Cloud CRM and In-house (on-premise) CRM.

What is Cloud CRM?

Cloud CRM is a web-based software where all the code resides on the “cloud”. Here, ‘cloud’ is simply an umbrella term. It means the software doesn’t need to be installed on your company’s network computers. You buy a membership, obtain an account, log into your account, and all the software is available on the website.

How to decide between In-house and Cloud CRM?

Choosing a CRM software is a complicated decision because it could cost a significant part of your budget. So you want to ensure that the CRM that you choose is capable enough to bring about all the positive changes it claims to bring.

The decision is about long-term revenue growth, and not just breaking even with your CRM investment.

Is Cloud computing suitable for your CRM?

As sales agents go about their day, they may be stationed within the office at their desk. B2B Sales often involves talking to the client in their office; traveling is a part of a sales agent’s job description. All business development managers need to account for the traveling expenses for the team.

And sales being a job with a lot of rejection, BDMs also have to ensure a higher level of sustained motivation within the team.

With an in-house CRM, any operational tasks that would require same day completion would require your sales agents to travel back to the office and log in an extra hour or two of overtime.

With cloud CRM, they could access the CRM system from their office laptops or even their mobile devices and finish a good percentage of their tasks while sitting in a cafe or traveling in a taxi.

This translates into some very important benefits for your business:

  • Faster execution of sales tasks improves long-term sales productivity
  • Your sales reps don’t have to scour through multiple documents to recall all the customer data; it’s available on their finger tips at the click of a button. This results in a shorter, more efficient sales cycle.
  • Reps can provide real-time updates and close deals faster.
  • Your IT department does not need to manage the CRM servers anymore. The Cloud CRM vendor hosts and manages the system on its own servers without any intervention needed from the client i.e. you. This frees up a lot of time and is suitable for smaller businesses that don’t really need to hire an IT department just to manage their CRM.
  • With the CRM data offloaded to the vendor, you save a huge chunk of your budget which you can then redirect toward hiring skilled marketing professionals and sales agents.

Will my data be secure enough in a Cloud CRM?

Data security is obviously a major concern and a valid one for those looking to purchase a cloud CRM.

In a 2018 report by Cybersecurity Insiders, over 60% of respondents said that cloud apps have security that is better than or at the same level of as that of on-premise apps.

More often than not, the challenges in cloud security have less to do with the software itself and more to do with the people who are using it.

In a stunning report, Gartner predicted that at least 95% of security breaches by the year 2022 will be attributed to policies for security and control at the client site - not at the cloud provider site.

So, how can you ensure proper security and control at your end after you deploy a cloud CRM.

First of all, cloud CRM security is different from security measures you would need to deploy for an in-house CRM. You must examine what the differences between two security implementations are and what measures can be useful in securing your cloud deployments. The articles linked in the above sentence should give you a head start to help establish a common ground over security with your cloud CRM provider.

With a greater technical focus on cybersecurity and physical separation coupled with higher resilience, you can get better security in a cloud CRM solution than in an in-house CRM deployment.

How secure is EngageBay’s Cloud Deployment?

All of EngageBay’s data resides on Google Cloud. When you choose EngageBay as your Cloud CRM partner, you are assured of Google-grade security of all your data in the cloud.

There are a few features that make an offering based on Google Cloud Security unique:

  • Information Security Team: With the top industry experts in network security, this team works to develop and implement strict review processes and implement Google’s security policies. Members of this team have stupendous achievements like detecting the Heartbleed bug and starting a reward program to report vulnerabilities.
  • Layered Physical Security at the Data Center: Google’s data centers have multi-layer security with physical controls (access barriers, alarms, perimeter fencing, etc) and procedural access controls with high-res 24/7 cameras, access logs, and activity records.
  • Security for the Servers and Software Stack: All the software for managing the servers has been custom-built by Google. This greatly reduces the system’s dependence on third-party software stacks and localizes the threat (if any is detected). It also helps Google teams to react faster in case of a security incident. The servers themselves are in thousands, allowing maximum data durability via replication.
  • Protection of server boot process with a customized chip called Titan: Google even has its own custom-built chip to secure the boot processes of its servers. It does so by verifying the software components along with system firmware. Titan allows Google’s servers to establish a hardware-level identity.
  • Multi-level Data Access Controls: Google not only controls the access to production environments, but it also does so with the help of personal public-key enabled security protocol. And these short-lived public keys are generated by a system that requires 2-factor authentication by the engineer.
  • A watertight data disposal policy: Any decommissioned hard drive goes through a data deletion process first and a delete verification process to check if all the data has been securely deleted. The data deletion process used here is also detailed by Google’s own Security Team. All facilities storing faulty hard drives are audited once every week to ensure rigorous implementation of Google’s security protocol.

For more details on Google Cloud Security, click here.

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