'Hosted' vs. 'on-demand' CRM

Is there any difference between "hosted" CRM and "on-demand" CRM?

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CRM marketers are constantly trying to differentiate themselves from each other. I wouldn't get too hung up on the term "on-demand." Generally, this is used to imply the ability to set-up or install users very quickly with minimal time and expense on a hosted subscription basis. It's also used to suggest that a CRM product delivers easy, fast, efficient, and accurate value to the business via powerful out of the box features and functions (reporting, business logic, analysis, product configuration, etc.). My advice: define your core needs and ensure any product under consideration has a history of successfully delivering on these features. In the end, the factors that matter most are:

  • How do you pay?
  • What do you own?
  • How is it implemented and supported?

For more information about hosted CRM, see these articles:
Pondering the future of hosted CRM
Handling hosted CRM growing pains

This was first published in February 2005

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