The Pros and Cons of CRM Open Source
An important aspect of business growth and CRM open sourceis the ability to effectively track and prioritize your leads, relationships, and opportunities. In the early phases of a company, these activities are often tracked manually. However, as your business grows and you acquire more leads, clients, or customers, a manual approach to organizing and tracking such vital information within your company will no longer serve your growth initiatives effectively.
If your company needs a more efficient, reliable, and time-effective solution for managing your business opportunities and customer relationships, then investing in a CRM open source system software is a great business decision, no matter the size of your company.
The two main types of CRM systems that you should research and compare are: CRM open source and Paid CRMs. To help you decide which CRM open source system will best benefit you and your business, here are the pros and cons of each type of CRM solution.
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What is Open Source CRM?
Open Source CRM systems are growing in popularity, particularly among small and medium-sized businesses. A CRM open source operates in a hosted, cloud environment that makes the system easy to access and use through a mere internet connection.
Pros of Open Source CRM
The pros to contemplate while conducting your research on free CRM open source systems include:
- Free CRM solution setup with affordable monthly licensing fees
One of the most appealing aspects of a CRM open source system is that you do not have to factor upfront hardware costs or ongoing server maintenance into your budget. CRM open source solutions are free to set up and offer affordable monthly fees based on the number of licenses you need for users.
- Simple customization for your business needs
Open Source CRMs are easy to customize to your business needs and help you stay organized and on track in your client relations. CRM open-source software gives you the power to customize according to your company's needs and you can only keep the features that you require. The source code of a CRM open source can be easily modified by a developer to provide tailored solutions for your company.
- No contracts or costly commitments.
Commercial CRM companies typically require a contract in order to use their system and programs. However, with CRM open source solutions, you are not under contract and do not have to continue using the system if it is not working for your business.
Cons of Open Souce CRM
There are some downsides, however, to free CRM.
1. Dependency on uptime and support
One of the disadvantages of using a CRM open source system is that you are dependent on the uptime and support of a third party. Most Open-source CRM vendors don’t provide support for the free version. Open source CRM provides limitless possibilities, but you might need help from professional developers to reap its full benefits. If you don't have an in-house developer then it adds to the additional cost to customize the open-source CRM software.
2. Fewer fancy functions and options
CRM open source systems are not yet known for their aesthetics, but changes and advances are happening frequently that could soon alter this. CRM open source solutions may sound ideal for some businesses that are not looking for much customization, but if you are looking for complex functionalities it might not be an ideal solution for you.
A paid CRM is ideal for larger companies that have adequate and knowledgeable IT staff to manage and maintain the on-site hardware that is required with this type of CRM open source.
There are also other pros and cons to consider in preparing for a paid CRM system integration, including:
Pros of Paid CRM
The advantages of a paid CRM open source can be great, and, depending on your business needs, can make a world of difference.
- Increased infrastructure and data control: One of the key advantages is that it provides users with increased infrastructure and data control. With CRM open source, businesses can have complete control over their data and can customize their infrastructure to meet their specific needs.
This can be a major benefit for businesses that require a high degree of control over their data and operations.
Additionally, CRM open source can be significantly cheaper than proprietary CRM solutions, making it a more cost-effective option for many businesses.
A paid CRM open source is an attractive option for companies that desire increased data control or must abide by stringent compliance regulations for managing and storing large amounts of very sensitive or private data.
- On-premise hardware: CRM open source systems that are based on an open source codebase can be run on a company's own servers and hardware. This gives companies more control over their data and how it is accessed and used. It also allows for customizations to be made to the CRM open source system to fit the specific needs of the business.
Purchasing and housing all the hardware for a commercial CRM system can be costly, but it also gives you full control over your system through your own IT employees. Paid CRM open source systems are usually more secure than open source CRM systems.
- Dedicated support: When it comes to CRM open source software, one of the key benefits is that you have access to dedicated support from the community of developers and users. This can be a huge advantage when you need help with using the software or resolving issues. However, it's important to remember that this support is not always free. In some cases, you may need to pay for support services from a third-party provider.
When you purchase a CRM open source system for your business, you will have access to a dedicated support team who can help you navigate complex integrations, troubleshoot issues, and answer any questions you have as you use the system.
- Quality Support: Another thing to keep in mind is that the quality of support can vary depending on the particular software and community. Some CRM open source software projects have very active and helpful communities, while others can be more difficult to get help from. Before choosing an open-source CRM software package, it's important to do your research and make sure that there is an active community that can provide the level of support you need.
Cons of Paid CRM
Here are a few of the downsides of a paid CRM system.
- Significant upfront costs
Perhaps the most significant disadvantage of using a paid CRM open source is the upfront funds needed to purchase all the hardware and begin using the system. While such an expense may feasibly fit into the budget of a larger company, many smaller businesses are not able to afford this option at their current level.
Paid CRM open source systems are more expensive to acquire and maintain. The total cost of ownership (TCO) may include hidden fees for upgrades and advanced functionalities.
- Hardware and server maintenance
A paid CRM open source solution requires your company to maintain all the hardware and manage the servers. If you do not have a skilled IT staff, then this type of solution will be much more difficult to implement, manage, and use to your benefit.
- Dependence on the Vendor
The Closed-coded and paid CRM open source software cannot be edited, modified, or debugged without the approval and support of the vendor.
There are numerous CRM open source systems available, and to select the one that best suits your needs it is a good practice to define the manual work that is slowing down your team’s productivity, research all the options, and deliberate the pros and cons of each solution. Our CRM Buyer’s Guide is a great resource to help you decide among the best CRM software in multiple CRM categories for your business.
If you are still confused you can use our CRM tool comparison to check CRM ratings for both open sources and paid CRM open source for your company.
Future of CRM Open Source software
The future of CRM out source software looks bright. There are a number of advantages that make CRM out source an attractive option for businesses of all sizes.
Some of the advantages of CRM out source include:
1. Lower costs - CRM out source is typically offered at a lower price point than commercial CRM solutions. This can be a significant advantage for small businesses and startups that have limited budgets.
2. More flexibility - CRM out source solutions are often more customizable than commercial CRM solutions. This can be a benefit for businesses that need a CRM solution that is tailored to their specific needs.
3. Increased collaboration - With CRM out source, businesses can take advantage of the collective knowledge of the community to improve the software. This can result in a better product for everyone involved.
4. Greater control - With CRM out source, businesses have more control over the software. They can make changes as needed and don't have to wait for the vendor to release an update.
The future of CRM out source looks bright. There are many advantages that make it an attractive option for businesses of all sizes. Do some research to find the best open source CRM solution for your business needs and take advantage of the benefits it can offer.