85% of CRM’s will be SaaS by 2025

If you are using a CRM, your CRM is most likely hosted in the cloud. If you aren’t using a CRM, you are light years behind your competition in regards to the amount of knowledge you have on your customers and your interactions with them.

Cloud CRM presents distinct advantages versus the traditional model of setting the system up in an onsite datacenter. Technology research firm Gartner predicts that 50% of CRM tools will most likely be delivered by cloud in 2015 and by 2025, 85% of CRM offerings will be hosted in the cloud.

Angus McFayden, a technology law expert affiliated with Out-law.com says, “The move towards cloud based solutions is predominantly being driven by cost effectiveness and the flexibility of those solutions.”McFayden goes on to say, “As a result, businesses are able to deliver on their strategies a lot quicker than if they had to build their own CRM system. It also removes the hassle of hosting and maintaining infrastructure in-house.”

CRM systems, much like traditional HR systems, are prime candidates for cloud migration. Many businesses may resort to a hybrid cloud computing model where customer data resides in an onsite datacenter while the applications are being run in the public cloud. Other businesses may prefer to keep their CRM system in a private cloud altogether. Although this is a more costly solution, some businesses have internal guidelines that will require them to keep customer data onsite.

CRM systems are expected to thrive within the next ten years. Salesforce, the de facto leader in cloud CRM, recently partnered with Microsoft Azure. These partnerships alongside Gartner’s predictions depict a clear, upward trend in regards to cloud CRM. By 2025, Salesforce and others will likely dominate the market. Given the potential predicted by Gartner, it will be interested to see if any other CRM players go public in order to compete with CRM cloud giants such as Salesforce.