Advances in security and processing speeds now allow organizations to get the same quality of service from an on-demand solution as with the traditional, on-premise options. However, on-demand CRM is different from traditional, on-premise options in regard to how it can be delivered and subscribed to. To allow for ultimate flexibility for every client type and demand, on-demand CRM solutions should offer several delivery models and knowing the options available to you will make you a more educated buyer when purchasing on-demand CRM.

Low start-up costs, rapid deployment, ease-of-use, limited IT resources needed for implementation and maintenance, and improved functionality have proven to be the right combination for many organizations reviewing on-demand or hosted CRM solutions. Moreover, advances in security and processing speeds now allow organizations to get the same quality of service from an on-demand solution as with the traditional, on-premise options.

However, on-demand CRM is different from traditional, on-premise options in regard to how it can be delivered and subscribed to.

On-Demand Delivery Offerings
To allow for ultimate flexibility for every client type and demand, on-demand CRM solutions should offer several delivery models:

Standard
Standard delivery options provide the lowest risk of any delivery model. This "try it before you buy it" or "never buy it at all" offering gives the company the opportunity to take advantage of the solution on a monthly subscription basis with full IT support. The service provider hosts the software on its premises, while the company pays a subscription fee to access the service.

Dedicated
This on-demand subscription solution allows the organization to purchase a "dedicated," on-demand environment versus the shared environment typically offered on the service provider's premises. Unlike a shared, on-demand environment, a dedicated environment gives the ability for a company to set up dedicated firewalls and dedicated encrypted VPNs, in effect, segregating the company's data, configuration and administrative control from the service provider's other clients. Dedicated environments usually appeal to the extremely security-conscious company that is willing to pay a premium for extra security.

Hosted License
If an organization purchases a license, its service provider can host and manage the software on the service provider's premises via a shared multi-tenant architecture. This way, the client enjoys the lack of maintenance headaches, but the peace of mind of owning the solution.

Internal
This delivery model allows organizations to bring the on-demand solution in-house and take advantage of the hosting design within their organization. In effect, the organization becomes an internal service provider of the solution. These internal service providers can then allow many different groups and departments to use and individually decide how they need to use the application, all the while using a single infrastructure and single application instance.

Subscription Types
With most on-demand solutions, there is an upfront implementation fee and an ongoing monthly fee. In terms of the subscription, there are typically two types: Named User or Concurrent User.

Named User subscriptions are less expensive and are issued based on the user's name. The company would register the employees to use the software, and only these users would be provided a password or key to the software.

Concurrent User Subscriptions are more expensive but are the preferred subscription option. This type of subscription is issued based on the number of people using the software at a given time. This means a company can buy five licenses, and any five users can be using the software at one time. This is especially beneficial for companies that work around the clock with multiple shifts.

Knowing these terms and the options available to you will make you a more educated buyer when purchasing on-demand CRM.