Although I agree with all the benefits you have mentionned, there are 2 reasons today that make me feel uncomfortable with hosted crm:

What do you do if your internet connection is down for any reason? You then have no local copy of anything to work with daily (calendar, contacts...)

What do you do if your hosting company goes out of business? This time not only have you lost your daily records but quite probably all your records and crucial business data.

Why not create some kind of hybrid system, with a local copy synchronised with the hosted version. At least both problems above might be covered.

Anyway, your software looks great, I'll still give it a try :)

Ben

Online CRM solutions is a must these days. To comment on Ben's concerns:
- If you do not have an online connection, you still can access your data via your phone. It can be a PDA, Blackberry or any cell phone that can sync with Outlook. I am not sure if ZohoCRM is offering this option, but most bigger companies such as Salesnexus LLC does.
- Second, to protect yourself from loosing the data if the hosted company goes out of the business, the best option is to select a well established, and known company that had been in this sort of business for years.

Two additional points to ponder when considering a hosted CRM:

1) It is difficult and expensive to install and maintain a CRM system onsite that can be shared by multiple users (particularly outside of the office); CRMs are by definition shared systems. Onsite = less sharing, less value.

2) Look at the success (or issues) that other companies are having with using hosted applications i.e. instead of guessing what would happen in different circumstances take a look at how companies are managing the differences and overall value received.  It's easier to measure past performance than to predict the future.