XYZ Inc. is a medium size enterprise (SME) in the retail industry with revenues of $40mil. Their business requires a CRM system. They have narrowed their choices down to two options: Option#1 is to use a CRM solution provided by a SaaS vendor. Option#2 is to acquire an Open Source CRM solution. What are pro’s and con’s of each option for a company of this size?
1. Keep your focus mainly on the I.T. themes from our class.
2. Be specific not general in your written ideas.
3. Write 2 to 3 paragraphs.
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There are definitely both advantages and drawbacks for each of the two suggested options. It is more likely the best option is the third, if it would have existed. The recommendations can be made based on the analysis of the technical side of the problem, but also of the business model itself.By comparing the ownership costs (slide 15 from the class) with the provided revenues of XYZ Inc., it seems the option that best fits is represented by the Open Source CRM solution. However, the recommendation cannot be sustained only by the afferent costs. As most extreme case, XYZ could contract a loan on medium period if and only if the incoming profits are enough to surpass the license fees, hosting (SaaS) and maintenance costs....
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