CRM Platform Considerations: Physical vs. Virtual vs. SaaS In the early days of Customer Relationship Management (CRM), deployment was limited to a single platform: a physical server. Although physical deployments still have their place, the introduction of virtualization and cloud technologies have made it much easier for small and medium-sized businesses to achieve a level playing field with large companies. Before you embark on a CRM initiative, however, you should weigh the pros and cons of each environment. Physical Server If your game plan is to implement an on-premises solution, you can't go wrong with a physical environment. For most companies, the limiting factor is the upfront investment. Physical servers require a great deal of start up capital, and it's difficult to justify the expense when you consider the overall cost of a physical server throughout its life cycle. When you've covered the initial investment, you still have operational expenses to cover, including upgrades and maintenance, as well as the cost of software licensing. Of course, if your CRM system is hosted in house, you're the one who’s in control. That means improved security and, depending on your industry, fulfilment of legislative or regulatory requirements. On-premises solutions are also easier to integrate with enterprise applications and allow for a greater breadth of customization than cloud solutions.