Cost Containment Improves with Cloud Computing-Based CRM Software
Total cost of ownership for NetSuite’s cloud-based CRM software solution is lower than a similar on-premise solution from Microsoft Dynamics GP and CRM, reports a new study.
The study from Hurwitz & Associates compares TCO for cloud-based and on-premise business applications that provide similar capabilities.
NetSuite provides it through cloud computing, while Microsoft provides it on-premise via a combination of Microsoft Dynamics GP and Dynamics CRM.
The study from Hurwitz & Associates assumes as the size of the company gets bigger, the ratio of CRM to ERP users increases.
“ERP use is typically limited to company executives, accounting and other back-office staff; while a broader range and typically larger numbers of employees, spanning company executives, sales, services and marketing departments, often use CRM. Since Microsoft sells and prices its Dynamics GP and CRM solutions separately, we accounted for this changing ratio as the number of users grows,” Hurwitz & Associates said.
The report also says that cloud computing vendors contain their variable costs more effectively when compared to vendors of packaged software.
The conclusion comes from a report, “The Compelling TCO Case for Cloud Computing in SMB and Mid-Market Enterprises,” in which it also says that cloud computing has also increasingly gained market acceptance. It is now seen as an alternative to traditional on-premise deployment and maintenance because of benefits it provides customers, the report said.
Cloud computing cuts out requirements to buy, deploy and maintain IT infrastructure or application software individually, the report adds.
Based on a four-year study comparing cloud and on-premise business application deployment, the cloud: eliminates capital costs, leads to quicker deployment and productivity, offers increased flexibility, improves customer service, gives better reliability and performance, and streamlines use and management.
“Cloud computing vendors can provide these benefits because they’ve built their solutions as Web-based services from the ground up,” the report said. Instead of building solutions to run in-house, they use a multi-tenant model.
Hurwitz reports the TCO for cloud-based vs. on-premise CRM software solutions was 55 percent lower for 52 users, 50 percent lower for 100 users and 35 percent lower for 200 users.
NetSuite CRM software offers customer relationship management (CRM) capabilities in a web-based CRM solution, the company says.
Some of the capabilities are: sales force automation, marketing automation, customer support and service, and flexible customization.
In a related matter, TMCnet reports that – according to Hurwitz & Associates – a comparison of NetSuite versus the on-premise Microsoft Dynamics GP/Great Plains shows that “CRM-implementation, customization, maintenance and training are all more cost effective with NetSuite.”
Ed Silverstein is a TMCnet contributor.
Similar Posts:
| January 18th, 2012 by Mikayla Harney | Posted in Software Development News |
Leave a Reply