Online CRM applications are also called hosted CRM service.  Instead of installing the CRM business suite in company servers, online CRM service provides web based solution for the company.  This means the CRM business suite will be hosted by the application provider.  CRM users on the other hand can access the software through web interface. 

Online CRM solution is ideal for companies that are just starting to implement a customer relations management system.  It is also ideal for companies that have no local server facilities.  All they will need are computer consoles that are connected to the Internet.  By logging on to their CRM accounts, they can now perform critical customer support and other integrated business process related to customer service.

Hosted CRM is a cost effective way of deploying CRM capabilities.  It is cheaper than on-site CRM deployments.  Normally, hosted application providers charge a monthly fee for the CRM service.  For as low as $12 per month companies that subscribe to CRM providers can have full CRM capabilities.  This will significantly cut expenditures and lower IT infrastructure investments.  It is also a good way to control variable expenses because the service can be easily terminated by the client if they do not wish to subscribe anymore. 

Online CRM also provides applications flexibility.  Employees can access their accounts even when they are not at their office.  This will enhance productivity of the sales force and it would be more convenient for them because they can do their job even when they are at home. 

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