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Web Based CRM Software - Disadvantages

In the previous article we have discussed the advantages of web based CRM software. However, CRM On Demand also has a couple of inherent disadvantages that are in some cases a direct side-effect of the advantages: security, support for complex business processes and lack of control on performance, stability and reliability.

Security is without a doubt one of the most crucial challenges for web CRM software, or any SaaS for that matter. These CRM solutions are accessed through the internet, meaning that everyone with an internet connection can at least hit the sign-in page without any problem. When on the other hand, CRM software is hosted on the company infrastructure, a malicious hacker would need to get at least its hands on a corporate PC or laptop, or break into the office before the web based CRM software can be accessed (assuming that the CRM On Demand application is only available from the company LAN or VPN). Of course, one would still need to authenticate but the point is that there is one less hurdle to overcome.

Another point is that not only the authentication side of the web CRM can be attacked. As a matter of fact, the whole web based CRM software can be scanned on vulnerabilities, being it caused by application programming errors in the online CRM, or vulnerabilities on the operating system, web server, application server or any other basic component of the solution. Although, web based CRM vendors take the necessary precautions, it is clear that the internet based architecture itself has some inherent vulnerabilities which are not present in classic on-premise CRM installations.

A second issue with web based CRM software is that a customer has limited control on the performance, stability and reliability of the solution. Web based CRM vendors do provide some basic guarantees on their service but when you read the fine print, I guarantee that the SLA’s on your CRM On Demand are not that impressive anymore. This is particularly an issue on systems like web CRM software that are becoming more and more mission critical for businesses. At the time of writing, Salesforce.com does not provide any uptime guarantees on their standard contracts. Potential web based CRM software customers also need to take into account that they won’t have any influence on the maintenance activity schedule, which typically but not exclusively takes place outside working hours.

The last issue I would like to talk about is not so much an issue about web based CRM itself, but more about the CRM vendor you choose. Let me explain. The single biggest issue customers encounter when implementing web based CRM is integration with their current back office systems and processes. Those are typically ERP systems, which are provided in majority by SAP, Oracle and Microsoft. The reason for this complexity is definitely not the integration on the technical level. As I discussed in a previous article, easy technical integration is one of the main advantages of web based CRM. However, the main challenge is situated on the semantic and process level. Business objects and their relations often do not correspond between different systems. Therefore complex integrations must be established to convert semantics. That is why potential CRM customers must take this integration factor into account when formulating the business case. Before choosing a pureplay web crm vendor, do not forget to consider the offerings of your ERP vendor, because they typically provide standard integration content to establish the interfaces. This will lower your implementation budget.

In this post we have outlined three issues to be taken into account when implementing web based CRM software. In a future article series we will have a look at the different web CRM vendors and compare them.

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