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Salesforce is a great solution and its hosted. I also like Microsoft CRM very much and it integrates well with other platforms and products you may be using on your back end, especially if you are a Microsoft shop. ACT is decent as well.
The biggest thing about using a CRM for the first time is your business process. Find the solution that maps to your business process with the least amount of configuration/customization out of the box. That will be the one to go with IMO.
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