As the sluggish economy impacts CIOs budget planning for the remainder of the fiscal year (and into the next), some technology advocates have revisited the debate over whether server virtualization initiatives save more money in the long run compared to "cloud-based" CRM applications.
Web-based, hosted CRM applications allow users to connect through any web browser, especially when using "dumb terminals" with little to no configuration. Essentially, a traveling sales agent with a computing mishap can walk into any retailer, purchase a bare-bones netbook or laptop with a supported browser, and reconnect to his or her customer relationship management tools instantly. However, "dumb" clients often lack the tight security demanded by enterprise IT managers.
On the other hand, server virtualization offers CIOs the ability to serve an entire desktop environment to an end user, not just a web application. Popular desktop-based CRM applications can be virtualized, along with other essential office software suites. IT management professionals enjoy the security of knowing that no customer data can live on "dumb terminals" in the field, especially if security measures prevent users from copying or pasting information from an active server session into a local document. However, a field sales professional must still provision equipment for use with a virtualized server environment. Client software and VPN tools must be installed and configured, often requiring direct support from IT teams.
Critics also worry that misconfigured server virtualization projects can cause companies to overspend on hardware, instead of investing budgets into CRM applications with proven ROI. Sales agents accustomed to buying the very best portable hardware might not realize that even a barebones client can enjoy the full power of a remote server. Likewise, conservative system administrators may fail to push rack mounted servers to their full potential, requiring extra backend costs.
As companies continue to develop remote CRM software strategies, hosted CRM solutions maintain an edge in both pricing and functionality. Yet, server virtualization solutions are gaining momentum, especially as end users become more comfortable with remote desktop technology.
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