Cloud-based customer relationship management (CRM) is often touted as an innovative way to ensure the best possible experience for the customer while tracking valuable data. The reality is that companies have been doing this for years with CRM software. The difference today is cloud CRM is heavily promoted as the next best thing. The challenge is identifying robust and proven solutions among the fake “cloud” CRM offerings.

A Smart Data Collective post recently shared six ways to spot fake cloud CRM offerings. Why the worry? With the popularity of cloud offerings in the market today, there appears to be a trend for vendors to brand a solution as “cloud CRM” when there are actually costs and complexities that shouldn’t exist with a true cloud solution.

This is often referred to as cloud washing. Tech Target (News - Alert) describes it as the purposeful and sometimes deceptive attempt by a vendor to rebrand an old product or service by simply putting the word, “cloud” with it. This is an easy trick to fall for if you are unfamiliar with the cloud and what makes it unique in the market.

Borrowing from Smart Data Collective, let’s examine the best ways to spot these fake cloud offerings. The first warning is installation requirements. A true cloud CRM solution needs nothing more than a standard Internet connection and is accessible through the Internet browser. If a vendor suggests additional servers have to be installed, this quickly negates the benefits associated with the cloud solution in the first place.

The same is true for software if the vendor requires that it needs to be installed locally. Unless the solution is a hybrid solution, you shouldn’t have to install software to make it work. Again, this defeats the benefits associated with the cloud.

Location of the server is another consideration for the identification of a true cloud CRM offering. There should be a network of servers in multiple geographical regions that allow staff to view information reliably and without the risk of malfunctions that tend to happen locally that can lead to data loss. If the solution is installed on a single server, those benefits don’t exist. Just because the solution is located offsite doesn’t automatically make it a cloud-based system.

If you are billed for more than what you use, it’s not a true cloud-based system. A cloud offering is billed on a per-user basis or something similar. If the vendor is trying to charge installation or setup fees, alarm bells should sound. If you don’t know what is being installed and why, time to ask key questions.

Finally, flexibility and mobility are two benefits that cloud CRM should readily deliver. If a user adds or removes services, the vendor shouldn’t have to get involved. A self-service portal should be available, which helps support lower service costs. Likewise, the whole team should be able to access, video and edit the data wherever they are, given they have the right permissions. The cloud enhances mobility and no third party products are needed.

If these rules don’t hold true for a cloud offering you are considering, it may be time to look elsewhere.