Get up and running quickly

Most hosted solutions are functional within weeks. Conversely, the on-premise version takes at least six months to be installed. Also, hosted versions can even be downloaded from the Internet with a credit card. The upshot is rapid ROI (return on investment), since implementation time is much faster.

I recommend: Some of the biggest names in software have turned to hosted solutions. Go to Oracle and SAP to research their offerings, such as ROI, speed to market and other key factors.

Lower cost than installed versions

By virtually outsourcing your CRM, IT costs are substantially cut. Start-up fees are minimal, and the monthly fees are straightforward and generally low. (Most of the fee is comprised of licensing costs.) Because software maintenance and support are outsourced, there's little need for a sizable staff.

I recommend: Sites like CRMBuyer.com and SearchCRM.com post articles and guidance on the cost of eCRM versus the installed versions. It pays to compare cost, line item by item.

Easily personalized

These days, CRM solutions fit easily into existing networks because they're highly flexible. The Internet is the backbone of the system. Some big enterprise companies like SAP and Oracle offer hosted services beyond just CRM that you can expand into.

I recommend: For useful information on personalization, go to CRMProject.com. And to find out which companies are expanding their hosted offerings, check out DestinationCRM.com.

Flexibility leaves room to grow

Upgrading an installed CRM solution can be costly. But the hosted solutions are highly scalable and can be easily upgraded.

I recommend: Gather more information on scalability at CRMGuru.com, where you can use its moderated discussion groups and peruse its CRM Knowledge Base of 1,000 tips and articles. 

Low risk tests

Not only are hosted solutions cheaper to implement, some even offer free trial periods so that you can test them.

I recommend: Sign up for a free 30-day trial at SalesForce.com, a market leader in hosting.