Software-as-a-Service in the Cloud
What are these techie terms “cloud” computing and software-as-a-service? The basic definition of cloud computing is the delivery of computing as a remote service rather than a nearby installed product. Companies do not need to buy and install their own software and hardware connecting to their internal private network. The true value of cloud computing is shared software services and shared hardware infrastructure thus lowering the cost for everyone.
We now come to the software side. Utilizing software “in a cloud” is called Software-as-a-Service or SaaS. Saas in the Cloud is very different from the old established way of companies buying and licensing their own software and installing and maintaining this onto their company-owned hardware systems. With HR software nationally, the use of licensed on-premise software is declining rapidly while use of subscription based SaaS has increased hugely over the past two years. Why? The main reasons are lower costs and improved user experience.
Top Reasons Reported for Moving to a New SasS Core HRIS:
- Improved user experience for employees, managers and HR
- Best practice functionality
- Easier upgrades
- Eliminates dependence on in-house IT
- Faster time to implement and achieve value
- Reduced need for internal infrastructure (uses current PCs and internet connections)
- Reduces total cost of ownership
- Predictable ongoing costs
For the Human Resources function, a significant part of SaaS value is it’s estimated to require only one third of the staff to support for implementation and ongoing support, as opposed to licensed software bought a company and installed on-premise. Yes, one-third the staff.
This is a huge strategic shift for HR. You no longer need to rely on in-house IT experts. What is required are the abilities to do business process design, analysis and implementation – not programming, support and maintenance of hardware and software systems.
SaaS is here to stay and firmly planted. The advantages are undeniable and being experienced by more and more HR managers every year. Within a few years, it will become the dominant approach for companies large, medium and small.