Is long-term total cost of ownership for on-premise CRM really lower than that of a cloud solution?
The debate between operating expense (aka opex, the cloud's approach) and capital expense (aka capex, the on-premise approach) is waged daily at companies. Although there are trade-offs no matter what a firm chooses, it's clear that opex is increasingly favoured. In the age-old rent-versus-buy debate, the cloud is making rental very compelling.
With the rise of cloud computing over the last couple of years, everybody thinks they have a pretty clear grasp of the facts regarding the conflicting arguments. Most are based on supposition, not actual research, until the Yankee Group ran the numbers. Although it has been a few years since the Yankee Groups breakthrough study, comparing hosted CRM systems to on-premise solutions for small and medium enterprises (SMEs), it still sheds valuable light on the debate over cloud verses in-house and even shatters a few myths.