If you’re an IT person reading this, prepare yourself to be offended.

Cloud doesn’t equal better!  Let’s just put that out there first.  Because its the new wave and buzz word floating around everything assumes new equals better.   Often times it does… but in the case of CRM…. not so fast sly one.

It is a fancy term to say your data will have foster parents, but you have visitation rights. The push for cloud comes as many IT directors are slow to get off their butts to implement new software for their user base. New software equals new drama for them. Often times the IT person is a third party company that is just too busy to help or the client is too small to work with a CRM Vendor.

If you have a very large in-house group of users (40+) and your data integrates with other in-house systems. Cloud is probably NOT the way to go. However, if you have nothing and your IT Director is slow to make a move. Cloud maybe a good first step. This action could prove successful in getting other non-crm committed managers to buy-in to what you’re doing. Its 2011 and the internet speeds are great and reliable, but still a cause for concern when mission critical data is outside your walls.

Also there is the myth about cost. Cloud is not cheaper despite what any marketing materials you may have read. Most companies say you have a lot of money on hardware and start-up costs. Well, hardware is not that expensive and most CRM packages will run on what you already have. Your first year on Cloud will cost you more than on-site software.

So when could Cloud be a good fit? If you are a virtual company with no other IT infrastructure. Cloud based makes obvious sense. You don’t have an IT person to turn to for setup and installation nor do you have a place install the software if you did. If you’re a start-up department in a large company with a completely different customer base than your parent company. The speed in which you can start is much faster on cloud. These types of departments get treated like double-step children. Not going to get any love from IT. You’re in a “just make it happen” type of situation.

So long story short …. if you need it fast and cost is not an issue. Cloud is for you. If you need it to run a large group of people or to keep cost lower, on-site is probably for you.