Software-as-a-Service (SaaS) is a growing phenomenon in worldwide business today. From the original ideas of outsourcing the data center and having third parties manage the software (the ASP movement of the turn of the century) to true SaaS today, the tsunami of outsourced IT and new methods of accessing business software solutions has created a multi-billion dollar market.

But first we will define the terms we are using. Consider the following industry definitions:

• On-Premise

- Software developed internally or purchased as a user license

- An up-front capital expense

- Software that runs entirely within the hardware systems of its owner or licensee

- The consumer is responsible for the management of the software installed

- Customers may be on many different releases of the software

• Hosted software/ On Demand Software

- Licensed software for which the supporting infrastructure and application support is outsourced to a third party

- Single tenant software

- The consumer may configure the software, but the technical infrastructure that hosts the software and its management is outsourced

The business reasons for the very high adoption rates of SaaS, as stated by industry analysts, include:

• More rapid access to state-of-the-art technology

• Shift in focus to core business management, rather than disproportionate attention on the computer environment

• More rapid time-to-production

• Improved security, performance, and availability

• Reliable access to data, anywhere, anytime

• Greater ability to scale as business needs change lower cost of business solution ownership

• Predictability of costs over time

• Avoidance of technology lock-in

• Increased risk mitigation with better support for compliance

Top Reasons for Popularity of On Demand CRM's are:

Freedom of Choice - True Platform Flexibility

Most growing businesses eventually migrate to an inhouse CRM system to satisfy the need for sophisticated, end-to-end process integration. Hosted CRM's today provides the capability to seamlessly move to an on-site CRM system giving the user platform flexibility

Deployment in Days

With Hosted CRM solutions there's nothing to install, so you can get started without calling your IT department or waiting for a consultant's help. In fact, you and your entire team can be up and running on the CRM in a matter of days.

Affordable

With hosted CRM solutions, one low price gets you everything you need—your CRM application, support, training, backups, updates, and more—without large, upfront software and hardware investments or a dedicated system administrator. Your CRM costs scale according to your

organization's growth.

Ease-of-Use

Everything from the user interface to workflows to accounts and order information reporting has been developed for ease of use. Plus, because these solutions integrate seamlessly with leading mailing solutions like Microsoft Outlook, you can conveniently use powerful CRM features from within the Outlook interface

Easily Customizable (no programming required)

Today hosted CRM solutions easily adapt to the way you work by letting you define your own processes. You can define specific workflows unique to your business, describe your own fields, profile key attributes and create your own screens, tabs, lists and views—without having to do any programming.

Critical Customer Information Access to Mobile Workforce

Real-time data at your fingertips anytime and anywhere with wireless connectivity and enhanced support for PDA devices using Pocket PC operating systems. PDA users can access a full range of functions both online and off, including the ability to view reports, update contacts and sales opportunities, qualify leads, track customer issues, and manager tasks and calendars. Anytime synchronization with your central CRM system translates into higher productivity and reduced costs.

Built-In Workflows

Keep everyone on the same page with CRM workflows that allow your entire team to follow identical processes. With hosted CRM software's, you can see exactly where each sale or project is and when it's expected to be complete.

Anytime, Anywhere Access

Hosted CRM solutions provides 24-hour secured access anywhere in the world. No matter where your employees are, they've got complete access to the data they need most. Plus, with wireless device support, your salespeople can access prospect information on their handheld PDAs.

Seamless Off-the-Shelf Integration

View customer account payables and receivables, order information, and more! Hosted CRM offers seamless integration to all of your accounting activities, presenting a true 360-degree view of your customers, and empowering your staff to provide enhanced service.

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