The battle: hosted vs. installed CRM

Reacting to the recent near-catastrophic power failure at Salesforce.com, contributing editor David Sims over at TMCnet has posted a nice analysis regarding the pros and cons of hosted and installed CRM systems. In Sims’ opinion, hosted CRM, though the popular choice du jour, is still too immature to meet long-term business needs.

Citing a press release he received in the wake of what may someday be known to Salesforcers as Black Friday, Sims agrees that hosted CRMs can be limited in custom features, carry untold hidden costs in the medium term, and cost companies extra when waiting for the subcontracted service. While Sims agrees with such points, he also argues that installed CRMs offer essentially no post-sale service, potentially a true headache in crisis situations.

Sims also gives a warning of “caveat emptor” in recommending the avoidance of long-term contracts. In the end, the back-and-forth is without easy answers; consideration and heavy planning are the greatest tools in assistance here.