July 24, 2015

Cloud Based CRM for Small Business: Pros and Cons

BY Artash Arakelyan IN CRM Software, Small Business 0 Comment

Cloud Based CRM for Small Business Pros and Cons

Cloud based CRM – is this something your company needs? According to Gartner, which is the world’s leading information technology research and advisory company, about 48% of the companies surveyed are going to move to cloud based CRM software in the next 3 years. Though cloud based CRM has many advantages that can put your company in a better position, it doesn’t necessarily mean it’s applicable for everyone. Applying cloud based CRM for small business can be revolutionary, but before doing so, it’s really important to take into account the size, nature of data, necessary level of security, mobility of the staff, their need for data access and resources of your company.

To help you in making smart decisions, today we will focus on introducing the pros and cons of cloud based CRM for small business.

PROs of Cloud Based CRM


  • More Accessible Database

24 hour accessibility is probably the biggest advantage of cloud based CRM. Imagine that you must make a phone call on the go, send a quick email to a lead, or just find some information about a contact when you are not at the office. Cloud based CRM allows you to have access to the system anywhere, anytime and from any device, whether it’s a smartphone, laptop or tablet. All you need to have is internet connection. So, by always having access to data, cloud based CRM enables you to do everything you need at every moment.

  • Flexibility

When small businesses adopt CRM software, they choose only the features they need in their current jobs and which are relevant to their current needs. However, as the company continuously grows, sometimes it becomes necessary to have more capacity, to adopt some new features and new solutions. Cloud based CRM offers flexibility as it can be updated to better fit your needs. There will be no need for you change your working style on any processes that are already doing fine; pick those that you need a change.

  • Ease of Use

Using a cloud based CRM for small business is easier than ever. First of all, you should buy the software package for a fixed monthly fee. After that, all you need to do is log in with the passcodes provided and make sure that you have strong and fast internet connection. There is no necessity to spend hours to install the software in your system, as all these things are done by the vendor. So, the ease of use is one of the biggest benefits of cloud based CRMs.

  • Cost Effectiveness

Cost effectiveness is the main reason why so many small businesses prefer having cloud based instead of on-premise CRM. The good thing is that in this case, your company is charged per user and you will be able to pay annually or monthly, depending on your preferences. This is a great chance for businesses that have limited budget.

CONs of Cloud Based CRM


  • Security

Security is an important concern of cloud based CRM users. Just because businesses can’t be responsible for the security of their data and it relies on the CRM solution provider, means that there can be some objections concerning this point. However, it’s worth to mention that most of the cloud based CRM providers pay tons of attention to security and confidentiality.

  • Vendor Company Longevity

Another thing that concerns small businesses is: What if the CRM solution provider goes out of business? In this case, your data can be at risk. This depends on many things, the most important of which is whether the provider suggests you escrow agreement or an arrangement to that effect. In this case, you can be safe, as you will be able to access your data when your provider gets out of business.

  • Migration of Data

Another problem related to cloud based CRM solutions can be the migration of data to cloud, from one cloud to another and so on. The reason is that there are some operating systems and apps which are not compatible with one another.


Selecting the right cloud based CRM for small business is essential. Customer’s data is the most valued asset for every company and it should be stored in a system that works best for your business needs. Make sure you evaluate the pros and cons of each option before making the final decision.



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