Hosted CRM for small business is a software deployment and ownership strategy in which a company hosts its customer relationship management (CRM) on servers via the Internet. Small business hosted CRM delivers the benefits of CRM systems without requiring the IT resources to run a traditional CRM system. Hosted CRM systems deliver flexible, convenient and cost-effective CRM solutions to small businesses that traditionally lack the IT resources to implement a traditional in-house CRM solution.

Hosted CRM for small business eliminates the installation, hardware compatibility, and software upgrade issues usually associated with purchasing and managing traditional CRM systems. In a Hosted CRM scenario, all maintenance, backups, upgrades and system management are provided by the Hosted CRM vendor. With operation costs factored in, small business hosted CRM implementations cost less, can be implemented sooner, and deliver a faster return on investment. Hosted CRM systems reduce TCO (Total Cost of Ownership) by adopting a subscription model; companies subscribe to the service over on a monthly or annual basis and pay as they go, adding additional user capacity as necessary. As a result the cost of hosted CRM for small business is significantly less than an in-house, traditional CRM deployment.

Since hosted CRM delivers service over the Internet, it gives users instant access no matter where they are. Small businesspersons who travel or who are not bound to a specific location can gain immediate productivity benefits from this flexible access model. This high level of mobility is also convenient for those who work from home.