Hidden Costs of an On-Premise CRM System – Part 2, Benefits of SaaS

04 Apr

As we discussed earlier, the costs of an on-premise system are significantly higher than a SaaS system. These higher costs include both the original investment and hidden costs for maintenance, upgrades, servers, electricity, etc.

When comparing the two types of systems, make sure to ask your vendor these questions:

  • What are the costs other than the software for items such as Servers, Server Software, Database Software, Consultant time to install and maintain Server, and the electricity for all of the above?
  • Over the life of the system, how much downtime can you expect with 1 server, electricity outages, upgrades, etc?
  • For on-premise software, there is a major upgrade every 2-4 years. What’s the cost of these upgrades?
  • What about consultant time for custom reports?
  • What about costs to backup data (onsite and off)?
  • Are there additional costs for mobile apps, outlook connectors, and integration with other software?
  • What’s the risk of having all of your data on one server vs. running a secure system online?
  • Am I restricted to a particular financial system?

These hidden costs can become overwhelming and make your return on investment years down the road. All of the hidden costs listed above are included in Cosential’s monthly fee. Be informed and make the most of your CRM investment.


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