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The rise of cloud-based solutions has completely changed the math when it comes to deployment of top-of-the-line HR solutions, allowing smaller companies to benefit from advanced functionalities just as much as their larger competitors. Still, many enterprises prefer to host their own software and retain full control over their data, even if it means they have to manage hardware and software elements of the system with in-house resources. This debate probably isn’t going to end anytime soon, so it may be the best to list the advantages and downsides of each architectural model in the context of human resource management and let each company come to its own conclusions:
Software-as-a-Service is a concept that is rapidly gaining mainstream recognition and is widely used in a number of industries. It relies on remote cloud servers for data storage and processing, liberating client-facing applications to be compatible with any device, even a mobile phone. Hence, the client doesn’t need any hardware purchases or software installations, and can simply utilize the solution as needed.
SaaS solutions come in many shapes and forms, but they are characterized by some common strengths and weaknesses regardless of the exact deployment model:
In contrast to cloud-based systems, on-premise solutions offer a greater sense of security and more complete control over proprietary data. Solutions of this type must be installed locally, so even if they feature wireless access they remain tied to a single geographic location. Access to software of this type is usually used based on licenses issued for a certain period, with every upgrade requiring additional agreement with the provider.
Here is an overview of the positive and negative features typical for this solution class:
While it’s true that different organizations prioritize different benefits, in most cases SaaS solutions represent a more cost-effective option. With improved responsiveness and advanced encryption techniques becoming the standard, this group of HR solutions seems to have addressed the most glaring issues and can now compare to custom-built solutions in terms of functionality. In 2018, only companies that already own the necessary infrastructure have reasons to consider locally hosted solutions.