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Software-as-a-Service in the Cloud

My last blog discussed what is meant by cloud-based computing.  The basic definition of cloud computing is the delivery of computing as a remote service rather than a nearby installed product.  The true value of cloud computing is shared software services and shared hardware infrastructure.  Companies do not need to buy and install their own software and hardware connecting to their internal private network. 

We now come to the software side.  Utilizing software “in a cloud” is called Software-as-a-Service or  SaaS.  In the 2013-14 HR System Survey for HR Executive Magazine, HR and IT executives were asked about their use and trends with Human Resource Information Systems.  With HRIS nationally, the use of Licensed On-Premise Software is declining rapidly while use of subscription based SaaS has increased 63% over a 12 month period.  Why?  The main reason is improved user experience – for employees, managers and HR.

Top Reasons Reported for Moving to a New SasS Core HRIS:

  1. Improved user experience for employees, managers and HR

  2. Best practice functionality

  3. Easier upgrades

  4. Eliminates dependence on in-house IT

  5. Faster time to implement and achieve value

  6. Reduced need for internal infrastructure (uses current PCs)

  7. Reduces total cost of ownership

  8. Predictable ongoing costs

For the Human Resources function, a huge part of the SaaS value is it is estimated to require only one third of the staff to support for implementation and ongoing support, as opposed to licensed software on-premise.   Yes, one-third the staff.   This is a huge advantage for employers and why we are seeing a rapid rate of adoption and use.  More on SaaS in my next post.