By Josh Davis
In our newest installment of the Workforce Management Trends Series, which we introduced earlier in the quarter, we’ve gathered some of the top payroll providers in the industry to talk about the cloud and how it compares to the traditional on-premise software model. Check out the cloud episode here.
It’s easy to forget that companies are still using on-premise solutions when you see cloud adoption rates over the past few years. In fact, according to Gartner, the traditional deployment model for on-premises software is expected to significantly shrink from 34 percent today to 18 percent by 2017. With this data, we can assume that 82 percent of all software deployments will be in the cloud in the next two years. And if you’re not providing a SaaS-based solution, you’re limiting your company to a fraction of the sales you could be generating.
We’re in the midst of something of a computing revolution. It’s comparable to how products were built and distributed prior to the industrial revolution versus after the industrial revolution. The cloud is continually a topic across the Kronos blogosphere and internet as a whole.
Cloud is constantly being covered as a trend – especially in the small and midsize business (SMB) space. But why?
Because it’s simple.
When we look at cloud vs. on-premise solutions, there are a number of reasons leveraging a cloud, or more specifically software as a service (SaaS), based solution is much easier not only for SMBs, but larger organizations as well.
- Upfront costs are minimal. Outside of an implementation fee, there’s nothing to pay for upfront. SaaS uses the same model as your electric company or cable provider – it’s simply a month-to-month payment for the service you provide, which typically allows customers to cancel at any time. The perpetual license constraints no longer have to be a problem or risk for your prospects.
- Installation isn’t necessary. Leveraging a new solution no longer has to be the major undertaking it was in the past for customers. As a result, leveraging a new solution can provide an incredibly short time to value for the customer, allowing ROI to be realized much faster.
- Hardware doesn’t exist. Unless we’re talking about employees clocking in and out on a computer or a time clock like InTouch, the need for hardware no longer exits. The entire solution is accessible on the web via a browser.
- Maintenance isn’t required. Security, reliability, availability, performance, and infrastructure, oh my! These don’t have to consume your thoughts and create that stress knot in your back anymore. They’re all covered by the service-level agreement (SLA) guaranteed by the vendor your partner with.
- Data backups are no longer your problem. The risk of data loss is mitigated with SaaS. With an on-premise solution, if your location was hit by a natural disaster and flooded for instance, the businesses solutions would be inoperable. With SaaS your data is always accessible from anywhere at any time, and if the vendor’s data center is taken down, you can confirm with the SLA that there is a warm standby facility ready to go that mirrors your and your customers’ data.
- Upgrades are automatic… and free! Upgrades to the software simply happen with SaaS. You’ll see new features as they’re released typically every one to three months. There’s nothing your IT team needs to do in order to make them available. And the pay-as-you-go model mentioned above means that you’re already paying for you and your customers to get access to the latest and greatest version of the software – there’s no additional cost.
- IT resources can focus on other initiatives. With the vendor taking care of the software, support, and troubleshooting for you, your IT resources are suddenly freed up to focus more on high-value activities and work on the greater strategy of technology and the role it plays in your and your customers’ businesses.
Like I said, the cloud and, more specifically, SaaS helps organizations of all sizes to operate more efficiently, but if you don’t believe me – check out what the real experts have to say.
About Josh Davis:
Josh is the Channel Marketing Manager at Kronos SaaShr, and is responsible for driving the marketing strategy and plan aimed at increasing the growth of existing channel partners in addition to the recruitment of new channel partners.