Continuing from where I left off on part 1 of this blog, part 2 of this installment covers the rest of the points you should keep in mind when choosing a deployment model.
Let’s jump right to it:
6. Do you want a subscription model for your HR application?
After your new HR application is up and running, ongoing costs will occur. If you are running an on-premise solution, these costs will mainly be maintenance and upgrades of networks and security, fixes, patches, upgrades, besides IT staff and hardware. But also downtimes and effort for performance tuning have to be considered. If you invest in a cloud solution these costs are fully covered by the provider. You only have to pay for an agreed subscription fee. This fee usually depends on the number of users and the number of locations.
7. Do you want an application which is simple to maintain?
A cloud application is designed to be up-to-date; therefore releases are usually published several times per year. If you want to benefit from these updates you have to check if your business process supports all the new functionalities that might come with the new release. On the other hand, an on-premise solution is stable. Usually customers are running the same setup for several years. Changes or upgrades are done in a project wherein several releases will be skipped and the application is upgraded to the most recent version.
8. Do you want to pay as you grow?
Do you expect a growing workforce or to expand in new locations? A cloud subscription model usually works based on the number of employees and locations, therefore these changes are usually already covered if you have agreed on a “chargeable employee range”. Also, new languages or country specific localizations can easily be added. A growth in the number of employees is usually also covered in an on-premise solution. Based on the application, localizations can be developed by your own IT department or can be requested to an external provider.
9. Do you want the advantages of both on-premise and cloud?
As many companies just invested in a stable on-premise HR solution, they cannot immediately move to the cloud. But they might also want to benefit from recent developments in HR and add this services to their portfolio. The solution for these requirements is called “Hybrid HR environment” combining both on-premise and cloud-based software. The advantages of building a hybrid HR environment with the right software are:
- Creating an integrated solution with end-to-end processes
- Leverage your existing investments while taking advantage of rapid innovation in the cloud
- Use a preconfigured solution to reduce the cost and complexity of implementing a hybrid scenario
- Increase the speed and reliability of your data transfers and your reporting
10. How can your company benefit from using an on-premise HCM system and a cloud HCM system in parallel?
For some companies it makes sense to look at a “Side-by-Side” deployment. That means you are using on-premise HCM and a cloud HCM in parallel. In this case, you would maintain parts of your employee population in your on-premise solution and simply synchronize them to the cloud. The other part of employees might be fully maintained in the cloud. All users are consolidated and accessible in the cloud, but data changes are performed in respective systems where the employee belongs.
This kind of set-up is often chosen if a company is in a transition of a merger or acquisition. Instead of a costly migration, the employee data of the acquired company can be deployed a less-costly and more efficient cloud solution to the on-premise HCM system of the company in order to maintain their HR data. A side-by-side scenario could also be used if a company wants to move to the cloud step by step, by module or population wise, or when expanding across borders.
The below graphic gives you an overview of SAP on-premise and SuccessFactors™ cloud applications. SAP is committed to deliver a productized integration, which differs from an interface in the way integration is standard and maintained. It is SAP’s commitment that the two sides, cloud and on-premise, will interact optimally. It is also SAP’s commitment that this integration will be maintained and will therefore survive any functional changes on one or the other side.
If you are planning an investment in your HR landscape you should first decide to go cloud, on-premise, hybrid or side-by-side. NGA can support you with this decision and also with solution architecture, data integration, process integration and implementation.