HR sees value in cloud
With cloud computing there is no more hardware to buy or replace, no more servers to maintain, no more IT staff to pay and no more backups to worry about.
HR departments and staffing firms “do not want to manage IT, they want to manage their business,” explains Simon Piff, a practice director for enterprise infrastructure at IDC, the IT market researcher.
Storage company EMC, for example, plans to use cloud computing to slash millions of dollars from the cost of a new HR system, states Australian IT.
According to the publication, the company expects that in a few years, enterprise applications will be delivered to employees the way apps are distributed on iPhones and iPads via Apple's online store.
With the new service, EMC employees can access HR services via the Internet and the company would pay per use rather than investing millions in the product and the hardware to house the software.
India PRwire reports that Malaysia's HR community is also in search of next-generation technology, with 2011 being a vibrant year for software-as-a-service (SaaS) providers.
According to an online technology monitor, about 40% of HR executives plan to implement SaaS this year and 32% anticipate that SaaS would simplify software management. In addition, 40% agree that SaaS provides costs savings, accelerating market demand by five times to reach $15 billion.
SaaS providers seem to be feasting on this uptrend from small and medium-size enterprises because of its relatively low cost. However, management costs that possibly run up to 10 times the licence fee and additional hardware costs that further reduce the ROI on technology threaten this buoyant uptake of HR solutions.
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