Open Source CRM - An Alternative to Hosted Models - Part 2.
In my previous post, we looked at why Open Source CRM can be looked at as an alternate to Hosted CRM models. In this part of the post, we can look at the adv and disadvantages of the hosted models and how open source CRM could be a viable alternative to overcome the challenges posed by the Hosted CRM market space.
Traditional CRM models as addressed above can basically be divided into two groups, Traditional On-Premise CRM Model and Web-Based CRM Model. Each of these CRM models have their own advantages and disadvantages that they provide to the businesses they are associated. Both forms of CRM systems provide a business with a way to manage leads, contacts, campaigns, accounts, customer service and all other areas of business within a software solution.
The advantages and disadvantages of CRM on-premise solutions are wide spread. One of the main advantages of on-premise CRM Software is that they are very secure and operate as an intranet application. But the disadvantage with such an approach is that there is a huge cost involved in terms of infrastructure and software installation.
These disadvantages were overcome with the arrival of the Web-based CRM model. Web-based CRM model works on the concept of CRM Software-as-a-Service model (SaaS). Another primary advantage of web-based CRM is that all data can be accessible from anywhere in the world as this works as an internet application. The other advantage is that information security is ensured by taking frequent backups.
The benefits of a good open source CRM model over the traditional CRM models can be addressed as below –
- Low cost involved in the form of Pricing,
- Customized versions of the open source provider's applications. This feature is possible as the source-code is freely available and the developer community is open in contrast to the traditional CRM models.
- Time-to-Market improves with more innovative and creative versions of applications getting delivered to the user community.
There are risks, however with the Open Source CRM -- the biggest being quality control of the deliverables and the second being lack of coordination with regard to the releases of various versions of the applications. The other risk involved here is that open source CRM is often built on open source platforms with open source tools. At a minimum, one needs Linux to run the applications. This problem is, of course, mitigated by a hosted solution.
To summarize the advantages of open Source CRM over the Traditional CRM model, we can have a look at the points listed below:
- Open Source CRM models involve less implementation time and higher speed-to-market.
- They are cost-effective and incur a reasonably low investment.
- They have fewer License issues as the licences are governed by GNU/FSF.
- Open Source CRM covers various subscription issues and hence result in long-term business commitments towards vendors.
(To be continued…)
