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Just to set some expectations, I m not going to jabber much about on-premise or on-demand at least, not as much as I have in the past editions since they are now well-established models that don t need me to explain them over and over again I m just going to provide some basics and a comparative checklist for you on the criteria to consider for selection of one or the other I will dwell a bit on cloud computing because it is new and becoming important and is still a source of confusion for most people I m also going to clarify the relationship between open source and on-premise/on-demand/cloud computing, which is something like peaches to peach pits Open source isn t competitive with the delivery models above It isn t a delivery model and, in fact, as we ll see, open source CRM (or any) applications can be delivered many different ways Okay Now that I ve managed your expectations, let s rock
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Rather than bore the living hell out of you with a long technical discourse on the differences between the varieties of on-premise software and on-demand services, let s take a look at the basic definition of on-premise to start By the way, technically, the actual term for this is on-premises, not on-premise I m going to leave it as on-premise because, as wrong as this phrasing might be, it s what most people already call it I m going to stand by it due to the Common Law Usage Rule, which says that even if it s wrong but in common use, it s right By the way, I just made that up
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On-premise is the traditional model for software installation and administration that you probably already know something about You license the software from a software vendor You run an instance of the software or multiple instances at your site and store the data associated with that application on servers physically located at your site with your administration and your security You control the data You also hire someone to install and customize the software and then stick around to get that licensed software working, since the odds of you being able to do it yourself are about the same as the odds of the software vendors liking each other Astronomical Over roughly a threeyear period, you tweak the system, handle downtime yourself, and at
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the end of the three-year cycle, you upgrade the software to meet the requirements you ve developed over that time This model has advantages for large enterprises in particular because it provides optimal control over your own feature/function/ process/data destiny and it scales better than the on-demand versions This doesn t mean that SaaS doesn t scale As we ll see, it most certainly does But most on-premise versions that scale are built specifically for the size of the enterprise that they were built for A complaint about on-premise that you often hear is that implementation can take months While this is still true for the most part, there is some potential relief in sight For example, late in 2008, I watched a demonstration by a Microsoft Certified Partner, AlfaPeople, which can provision an on-premise or on-demand Microsoft Dynamics CRM 40 system so that it is up and running in 10 minutes without customization, of course Even so, that indicates how incredibly quickly these systems can be set up It actually took two seconds to install and provision a Microsoft Dynamics CRM system in the demonstration I saw While long on-premise installations are hardly a thing of the past, there is progress toward the future
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