HRIS Session Cloud Computing

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    Cloud Computing

    Sangeeta Shah Bharadwaj

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    What is Cloud Computing?

    Cloud is simply a metaphor for the

    internet.

    Users simply rent or access the hardware,

    software etc

    Computing has become utility, paying only

    for what you use

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    Early Leaders in the Industry

    Microsoft Azure

    Launched in July 2002, Amazon Web Services

    provided online services for other web sites or

    client-side applications.

    IBMs system introduced in the mid 2000s

    called Blue Cloud.

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    Functionality

    Software / applications are costly and require

    upfront investment. With cloud, you rent so

    the heavy investment is forgone

    Cloud computing enables companies of all

    sizes to build, deploy, monitor and scale

    applications using resources accessed over the

    internet

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    What Technologies is Cloud Computing

    Replacing?

    Cloud computing is replacing large Corporate

    Data Centers, Enterprise systems like ERPs,

    CRMs (normally for SMEs), disaster recovery

    centers, BOB applications on cloud

    Everything on cloud: SaaS, PaaS, DaaS, IaaS

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    What do these services offer an

    organization?

    Usability

    Scalability

    Standardization Triability

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    Potential Issues

    Data residencytime delay between data

    being requested and delivered

    Security and confidentiality- of data being

    stored outside the company

    Business buy-in-convincing companies of the

    infrastructure and reliability

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    Cloud Computing Pros

    Reduced hardware

    Improved performance

    Lower maintenance

    Instant software updates Accessibility

    Less Expensive

    Better Collaboration

    Pay for what you use

    Flexible

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    Cloud Computing Cons

    Security Issues (#1 concern)

    Internet Connection

    Too many platforms Location of server

    Time for transition

    Speed Cannot be used for critical business function

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    Delivering HR through SaaS

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    What is SaaS?

    Application delivery model where a software

    vendor develops a Web software application

    and hosts and operates the application for use

    by its customers

    Delivers software to customers through a

    internet

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    What is SaaS?

    Users do not need to pay for ownership or

    licensing but just pay for the services through

    subscription

    Provides a low-cost means for businesses to get the

    same benefits of commercially licensed, internally-

    operated software without the associated complexityand high initial cost

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    Evolution of SaaS

    Customized

    applicationSoftware

    productSaaS

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    Software-as-a-Service (SaaS)

    Started to flow in the IT industry during 2000-2001

    Has become more practical to use because newfunctionalities can be added easily

    The licensing fees and infrastructure fees is to be paid byvendor and not by customer

    Customer only pays for the use of software

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    Latest Trends in HR Transformations

    Intensified Focus on Results

    Organizations have limited tolerance forcontinuing to spend money related to HRtransformation without tangible results forefficiency and effectiveness of the HR

    organization.

    As per Deloitte survey, 84% of clients are eithertransforming or planning to transform HR

    85% cited cost savings as the key driver and 75%cited more effective service also as factor

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    Latest Trends in HR Transformations

    Accelerate the value of HR Transformation

    Speed is the key to realize value through HRtransformation these days

    SaaS can be such a compelling option forcompanies struggling to realize how to show theirorganizations the value of transformation now not just a year or two in future.

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    Highlights of SaaS Enabled HR Transformation

    Value Delivered Immediately usable

    Less dependence on IT

    Configure, not customize

    Improved Service Levels

    Deployment Mode Accelerate deployment timeline

    Ease of Integration

    Rapid delivery of new functionality

    Updates, not upgrades

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    Highlights of SaaS Enabled HR Transformation

    Economic Return Reduced implementation costs

    Lower ongoing cost

    Cash flow much less (subscribe vs. buy)

    Faster realization of transformation benefits

    Talent Faster deployment of improved, flexible and

    more intuitive tools to the end users

    Faster timeframe to deploy talent functionality Frequent talent feature/functionality updates

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    Case: Excel Services

    What would be your decision?

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    Benefits of SaaS in HR Management

    Highly affordable; SaaS applications arecomparatively cheap when compared to heavy ERPsystems like SAP, Oracle etc.

    Leverage cost savings from SaaS to invest in othercomponents critical to successful HR

    implementation Global HR practices

    Available Anytime Anywhere

    No software Installation Needed

    No IT infrastructure to be setup

    Immediate Installation

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    Benefits of SaaS in HR Management

    Constant updates

    Configuration possible

    Allows small firms opportunity to adopt bestpractices in HR and compete the larger firms

    Flexibility in changing the vendor Flexibility of having different vendors for

    different modules

    Flexibility of adding more users license as and

    when the employee increased

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    Concerns of SaaS in HR Management

    No direct control of the data

    Internet connection required

    Security awareness

    Industry specific applications; less suitable forcustomizations

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    Major Concerns for SaaS

    Service Level Agreements (SLA)

    Security, reliability, availability of data

    Channel partners Provide value-added services

    Provide best overall solution

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    Solution Selection?

    ConfigurabilityAbility to work as HR organization really worksDoes this solution forces my organization into any painfulchanges in order to use it?

    AdaptabilityAbility to grow with HR and as the business changeHow can, and will, the solution and provider change andadapt to my changing business realities?

    Integra ability

    Ability to integrate with existing on-premise systems andother SaaS systems

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    Provider Selection

    Support

    Availability of cost-effective, responsive user support is ofutmost importance

    ImplementationCost of Implementation and the availability of highly skilledimplementation resources

    Prior experience and examples of implementations by theprovider

    HR Experience & Knowledge

    SaaS provider must understand HR, not just build and sell HRsolutions

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    SaaS in the Future

    Enterprise HR will rely more on SaaS

    hosting services and functionality

    little maintenance

    low cost

    SaaS are growing much faster than

    their traditional software model

    counterparts

    Target: SMB market