Basic CPQ software lives on one computer, so users can only access the platform when they can access the machine. This creates a lot of unnecessary complications and inconveniences for remote workers. Even more, if something happens to the computer the software is installed on, sales won’t be able to configure or price orders until the hardware is repaired. Cloud-based CPQ is available online, so any user with WiFi and login credentials can access the platform. Additionally, cloud-based solutions offer this convenience without sacrificing security, thanks to standard data encryption.
With outdated CPQ programs, quote documents, configuration profiles, and other important information is stored on a single machine, siloed from other team members. Employees have to manually update sales databases or be prepared to field questions from coworkers about order status. With cloud-based CPQ, all configurations, orders, and other actions are automatically logged in the system for complete transparency and traceability. Distributed teams can collaborate seamlessly without spending extra time or effort updating databases or giving status updates. Even better, since the service is delivered through the web, customers can configure orders and request quotes on their own through an online portal for an ultra-convenient experience.
On-premise CPQ requires purchasing and installing expensive software, plus specific computers and servers. In addition to the high upfront investment into this equipment, maintenance can be considerably more costly since there is hardware to consider. For cloud-based CPQ, all you need is the computer you work on and access to the internet. This version of CPQ is essentially software-as-a-service (SaaS), requiring only a recurring subscription fee to maintain.
On-premise CPQ requires hardware-based installation and updates, a time-consuming and often error-prone process that undermines productivity. Since cloud-based CPQ is always accessible online, there’s no complex installation process. The platform already exists online, and users simply login to their account from any computer to access it. Once users set up their catalog and program the rules for pricing and configuration, the CPQ is ready for deployment. The cloud-based nature of the platform makes software updates easier as well, since developers can simply modify code in the cloud rather than shipping new installation hardware. Cloud-based solutions also avoid any compatibility issues with different computer operating systems.
Most specialty manufacturing industries follow a seasonal cycle, with some quarters seeing significantly more quote requests than others. Some companies hire temporary sales support to manage these busy periods. With on-premise CPQ, growing the sales team requires investing in additional computers and software licenses, then enduring the same rigorous installation process as the original deployment. To scale operations with cloud-based CPQ, users simply buy more login credentials to grant access to more associates. The software scales up and down effortlessly based on the user’s current needs.