Hosted software is that software that has been installed and then accessed from a remote location or server. It is often managed by a third party or the software manufacturer. One benefit to using this software solution is that users can access it from anywhere in the world through an internet connection. This software solution shouldn’t be confused with cloud or SaaS solutions. In a hosted situation, the user purchases software from a publisher. The software is installed at a data center. The user is then able to use the solution as if it were installed at their own location. The costs associated with this software solution include an upfront payment for the software and an hourly or project-based price. Finally, there is usually a monthly fee to cover the hosting center costs.
Benefit One: Ownership of the Software and License
There are several advantages to seeking hosted CRM dynamics. One of these is that you are the actual owner of the software, meaning that you have an indefinite license to use it. You’ll only have to pay once other any ongoing maintenance. This cost may fall between 15 and 20 percent. You could choose to stop paying for maintenance and the software would then continue to operate without any updates.
Benefit Two: Security for Your Data
Another advantage to using hosted software is that your information is held securely in a hosting center that may have installed a number of security measures, such as multi-site redundancy and ongoing backups. You’ll be able to connect to your data from just about anywhere without worrying about lost files or corruption in programming or other common problems that may occur when your data is stored on-site at your business.
Benefit Three: Ease of Using Applications at Your Facility
What if you chose to bring your application back to your facility? Many data or hosting centers offer the use of “virtual” servers that make it possible for you to run the application on your own hardware, right in your own office. This is an important advantage that isn’t possible with all of the other software solutions.
The Drawbacks to Hosted Solutions
There are a few drawbacks when using hosted CRM dynamics. The monthly costs of hosting could exceed the costs of keeping the software in-house depending on certain variables, such as the type of non-hosted solutions you are currently using. Another drawback to the hosted solution is that you won’t be able to access your system if the internet connection goes down. (You can counteract this situation by running redundant internet lines to your facility.) If you want to use other solutions, or connect additional solutions to your ERP, you may have to provide a way for those to also be supported at the data center. It can be difficult for to create a real-time integration between local applications and hosted. Finally, this type of software solution requires a lot of bandwidth.
Weigh the Pros and Cons
Have you considered the use of hosted CRM dynamics or other hosted software solutions? Consider the many advantages and the disadvantages associated with this solution. You may find that the disadvantages are minor inconveniences compared to the benefits to your organization.