{"id":5829,"date":"2015-08-23T04:47:35","date_gmt":"2015-08-23T04:47:35","guid":{"rendered":"https:\/\/tst-blog.myenterprise.in\/?p=5829"},"modified":"2025-01-14T09:11:04","modified_gmt":"2025-01-14T09:11:04","slug":"budgeting-for-an-onsite-private-cloud-sugarcrm-deployment","status":"publish","type":"post","link":"https:\/\/www.bhea.com\/blog\/budgeting-for-an-onsite-private-cloud-sugarcrm-deployment\/","title":{"rendered":"Budgeting for an \u201consite\u201d OR \u201cprivate cloud\u201d SugarCRM Deployment"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">There are times when some companies take the decision of going for an&nbsp;<strong><a href=\"https:\/\/www.bhea.com\/crm-solutions\/sugarcrm-services\/sugarcrm-hosting\/\">onsite SugarCRM deployment<\/a>&nbsp;or a&nbsp;<a href=\"https:\/\/www.bhea.com\/crm-solutions\/sugarcrm-services\/sugarcrm-hosting\/\">private cloud SugarCRM deployment<\/a>.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The reasons for this choice could be for \u2013<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list is-style-cnvs-list-styled-positive\">\n<li>Corporate Policy of keeping all the customer data inside particular premises.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list is-style-cnvs-list-styled-positive\">\n<li>Lot of integrations with the back end systems to ensure speed and connectivity does not become a bottleneck.<\/li>\n\n\n\n<li>Country policy for not hosting the key customer data in other countries for financial sector customers.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There may other reasons for companies to move from hosting applications on <strong>premise to cloud,<\/strong> but there are also companies that had to go for<strong> On Premise or Private Cloud implementations of CRM<\/strong>. There was definitely a time <strong>during 2000 to 2010<\/strong> when the <strong>license cost of on premise implementation<\/strong> was <strong>cheaper <\/strong>than a <strong>cloud based CRM<\/strong>. The cost of <strong>hosting a CRM on the cloud<\/strong> was <strong>higher<\/strong>, while licensed product vendors used to charge less for the on premise implementation of the product.<\/p>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile has-gray-200-background-color has-background cnvs-block-core-media-text-1724129963458\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment.png\" alt=\"Budgeting for onsite or private cloud SugarCRM deployment\" class=\"wp-image-7808 size-full\" srcset=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment.png 800w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-300x225.png 300w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-768x576.png 768w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-380x285.png 380w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-550x413.png 550w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-600x450.png 600w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-onsite-private-cloud-deployment-760x570.png 760w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n\n<p class=\"wp-block-paragraph\"><strong>But now the trend has reversed. <\/strong>The cost of hosting has <strong>come down slowly but steadily in the last 15 years and cost of support for a product<\/strong> that is hosted on customer premise has risen as \u2013<\/p>\n\n<\/div><\/div>\n\n\n\n<ul class=\"wp-block-list is-style-cnvs-list-styled-positive\">\n<li>Managing on premise environment setup is complex and expensive than cloud based setup<\/li>\n\n\n\n<li>Setting up the environment is complex in terms of scalability, security, availability, etc.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile has-gray-200-background-color has-background cnvs-block-core-media-text-1729498852792\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud.png\" alt=\"Onsite vs private cloud deployment costs for SugarCRM\" class=\"wp-image-7809 size-full\" srcset=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud.png 800w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-300x225.png 300w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-768x576.png 768w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-380x285.png 380w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-550x413.png 550w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-600x450.png 600w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-deployment-onsite-vs-cloud-760x570.png 760w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n\n<p class=\"wp-block-paragraph\">So,<strong> CRM companies<\/strong> have taken the balanced approach of charging the same license fee whether it is on demand or on premise. This approach makes<strong> the cost of On Site Implementation <\/strong>much more <strong>expensive than the On Demand version <\/strong>of it.<\/p>\n\n<\/div><\/div>\n\n\n\n<h2 id=\"sugarcrm-deployment-options-comparison\" class=\"wp-block-heading has-text-align-left\">SugarCRM Deployment Options Comparison<\/h2>\n\n\n\n<figure class=\"wp-block-flexible-table-block-table is-style-stripes\"><table class=\"\"><thead><tr><th style=\"width:15%\">Features<\/th><th>SugarCRM On Demand<\/th><th>SugarCRM On Cloud<\/th><th>SugarCRM On Site<\/th><\/tr><\/thead><tbody><tr><td style=\"width:15%\">Hardware<\/td><td>On SugarCRM Data Centres and URL is provided within 24 hours of signing the agreement and payment.<\/td><td>Should be purchased from cloud vendors like Amazon Web Services, IBM SoftLayer, Microsoft Azure or any other vendor.<\/td><td>Hardware should planned for sizing and procured from vendors.<br>Needs to plan for the cost and time to deliver. If hosted in a Data Centre, should plan for Data Centre rent and if hosted in house should facilitate for power and ups backup along with net connection.<\/td><\/tr><tr><td style=\"width:15%\">Cost<\/td><td>Yearly SugarCRM License Cost<\/td><td>Yearly SugarCRM License Cost + Monthly \/ Yearly Cloud Cost<\/td><td>Yearly SugarCRM License Cost + One Time Hardware Procurement Cost + Yearly Maintenance Cost.<\/td><\/tr><tr><td style=\"width:15%\">OS \/ DB Cost<\/td><td>Not Required<\/td><td>Linux \/ Apache \/ MySQL \/ PHP \u2013 Free<br>$ \u2013 if Enterprise Linux is chosen<br>$ \u2013 If Enterprise MySQL is chosen<br>$$ \u2013 For Windows \/ IIS \/ MS SQL \/ PHP \u2013 Windows and MS SQL License Fee$$ For SugarCRM Enterprise Edition installed on Oracle DB, Oracle License Fee<\/td><td>Same as the On Cloud<\/td><\/tr><tr><td style=\"width:15%\">Setup and Installation of OS and DB.<\/td><td>Not Required<\/td><td>Easy from pre configured stack provided by Cloud Vendor.<\/td><td>$$ \u2013 To be done by the internal IT team or to be outsourced to the partner.<\/td><\/tr><tr><td style=\"width:15%\">Performance Optimisation<\/td><td>Comes with Performance Optimisation<\/td><td>$$ \u2013 Performance Testing and Optimisation needs to be planned before rollout for medium size and above implementations.<\/td><td>$$ \u2013 Performance Testing and Optimisation needs to be planned before rollout for medium size and above implementations.<\/td><\/tr><tr><td style=\"width:15%\">Hi-Availability<\/td><td>In Built<\/td><td>$$ \u2013 Available at an extra cost from the cloud vendors.<\/td><td>$$$ \u2013 To be done by internal IT Team or by specialised IT infrastructure vendor.<\/td><\/tr><tr><td style=\"width:15%\">Databank up and Restoration<\/td><td>In Built<\/td><td>$ \u2013 Available with most of the cloud vendors<\/td><td>$$ \u2013 To be setup by the internal IT policies or partner should set up as well as maintain.<\/td><\/tr><tr><td style=\"width:15%\">Security<\/td><td>In Built \u2013 SugarCRM can provide yearly security test reports if requested.<\/td><td>$ \u2013 One Time Security Setup<br>$ \u2013 If compliance requires company needs to spend on penetration tests.<\/td><td>$ \u2013 One Time Security Setup<br>$ \u2013 Maintenance of security patches \u2013 should depend on internal IT Team or external security team.<br>$ \u2013 Penetration Test from third party vendors.<\/td><\/tr><tr><td style=\"width:15%\">Time<\/td><td>Immediate<\/td><td>Should budge time for setup and execution<\/td><td>Should plan well for procurement, setup, application installation etc. Consumes more time than the others<\/td><\/tr><tr><td style=\"width:15%\">Application Maintenance and Upgrades<\/td><td>Upgrades are automatic and done by SugarCRM<\/td><td>Partner or internal IT team should do upgrades for both application, operation system \/ database and other components.<\/td><td>Partner \/ internal IT team should take care of application, operating system \/ database upgrades.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile has-gray-200-background-color has-background cnvs-block-core-media-text-1729499577907\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs.png\" alt=\"SugarCRM commercial editions for on-demand, in-house, or third-party hosting with cost considerations\" class=\"wp-image-7807 size-full\" srcset=\"https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs.png 800w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-300x225.png 300w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-768x576.png 768w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-380x285.png 380w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-550x413.png 550w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-600x450.png 600w, https:\/\/www.bhea.com\/blog\/wp-content\/uploads\/2024\/10\/sugarcrm-commercial-editions-hosting-costs-760x570.png 760w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.bhea.com\/products\/sugarcrm\/\">SugarCRM<\/a>\u00a0commercial editions<\/strong> are available for both on demand or in <strong>house hosting or third party hosting<\/strong>. It is better to know <strong>the cost of installation<\/strong> and<strong> maintenance of on premise hosting<\/strong> or <strong>third party cloud hosting<\/strong> before we plan\u00a0<a href=\"https:\/\/www.bhea.com\/crm-solutions\/sugarcrm-services\/crm-implementation-strategy-consultancy\">CRM implementation\u00a0Strategy<\/a>.<\/p>\n\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Some of the components we should be aware of are \u2013<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list is-style-cnvs-list-styled\">\n<li>Annual cost of SugarCRM License.<\/li>\n\n\n\n<li>Hardware sizing recommendation &amp; Cost \u2013 Size your hardware based on the number of users who are going to use the system, type and number of integration that are going to work on it and data size\/volume. Since integrations works on RESTFul API the speed of the application without integrations and with integrations will be different.<\/li>\n\n\n\n<li>Once hardware is sized, procure the hardware or buy the third party cloud for implementation.<\/li>\n\n\n\n<li>If the number of users is 50 and above, plan for a performance and optimisation time and effort to ensure speed of the customised application are tested and improved.<\/li>\n\n\n\n<li>Operating System and Database setup and high availability setup if that is planned.<\/li>\n\n\n\n<li>Security \/ HTTPS certification procurement and installation and domain settings.<\/li>\n\n\n\n<li>Application installation and customisations transfer, data migration and integration planning.<\/li>\n\n\n\n<li>Yearly Maintenance of the hardware, software upgrades and application upgrades. This includes system\/application monitoring \u2013Application will be monitored on Performance, Data transfer and synchronization, Security, etc.<\/li>\n\n\n\n<li>Planning for high security hardening in terms of user\/file\/folder permission, etc., if your business is from Financial sector with government regulations and compliances.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">At Bhea, we believe in understanding our client requirement based on which we plan and implement our deployment.<\/p>\n","protected":false},"excerpt":{"rendered":"There are times when some companies take the decision of going for an&nbsp;onsite SugarCRM deployment&nbsp;or a&nbsp;private cloud SugarCRM&hellip;\n","protected":false},"author":5,"featured_media":7363,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"two_page_speed":[],"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_masonry":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[41],"tags":[51,47,59,60,61,62,63],"class_list":["post-5829","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crm-implementation","tag-crm","tag-sugarcrm","tag-sugarcrm-cloud","tag-sugarcrm-hosting","tag-sugarcrm-onsite","tag-sugarcrm-private-cloud","tag-sugarcrm-public-cloud","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Budgeting for an onsite private cloud SugarCRM Deployment<\/title>\n<meta name=\"description\" content=\"Understand the costs and challenges in budgeting for an On Premise SugarCRM Deployment or Private Cloud SugarCRM Deployment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bhea.com\/blog\/budgeting-for-an-onsite-private-cloud-sugarcrm-deployment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Budgeting for an onsite private cloud SugarCRM Deployment\" \/>\n<meta property=\"og:description\" content=\"Understand the costs and challenges in budgeting for an On Premise SugarCRM Deployment or Private Cloud SugarCRM Deployment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bhea.com\/blog\/budgeting-for-an-onsite-private-cloud-sugarcrm-deployment\/\" \/>\n<meta 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