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Donald H Taylor

Jim, there is an altertive to the dichotomy of either using SaaS *or* waiting for an ERP/HRMS module that's good enough and deployed as you wish.

Customers can also deploy an HCM solution behind the firewall and integrate it with their existing ERP/HRMS. This gives them the real HCM functionality of using human capital information across HR functions. Plus, it needn't prevent them from migrating back to the ERP/HRMS solution when it becomes available.

Disclosure: I'm a director at work for InfoBasis, a high-end technology company that does this.

Martin Snyder

Jim I'm impressed that you are willing to go against the orthodoxy of the church of SaaS, and note that the model may not be the best possible choice for every last software user on Earth.

The version issue you raise is, of course, valid, but even more important to most business cases around the decision are the costs and margins involved (imagine that!).

For example, end-user firms that have a fixed cost case for a given application in webservers, bandwidth, and database admin services likely would be spending less running it themselves- because they would be paying margin to a third-party while not using all the asset value already paid for.

SaaS is a dream for software vendors- good client lock-in, nice margins on services and systems, recurring revenues that are great for company valuation, lower testing and tech support needs (after all, the code only needs to work in one environment) and other vendor friendly elements of control.

SaaS is also fantastic for those end-user firms NOT in a fixed (or nearly) fixed cost case; they can access far more technology than would have been possible prior to the SaaS model being developed. At very large scales, it again becomes better for an outside firm to handle the software because in those cases, small differences in efficiancy add up to meaningful numbers, and running very large scale apps becomes a material capital allocation question.

That's the basis for the hype, and it's not a small advantage, it's just not a perfect model for every end-user firm- and many end-user firms are in that middle zone.

Vendors who can only provide "one demand' or who can only provide licenses are going to find themselves on the short side of lots of deals- so its likely that firms with strong offerings on both models will have a real edge.

Last, and somewhat related, the word I get about the latest ERP offerings (in recruitment anyway) is that they are better, but still a world away from the best niche players, which means another few years, at least, of life for that particular submarket, even at large corps.

Jim Holincheck

Donald and Martin both make good points. I was not saying that niche or talent management application suite solutions have to be SaaS. They certainly do not. Though our research shows that outside of the ERP vendors, that SaaS/Hosted solutions have been the primary delivery models.

The question for every market is when do the large vendor solutions become "good enough". I would agree that the ERP vendor solutions are not as good as cutting edge niche/TMAS solutions today. However, they are getting better and will continue to get better. The threshold will get crossed eventually.

Tom O'Brien

Jim:

As the ERP's improve their applications over time to "catch up" the niche/TMAS vendors continue to raise the bar - precluding functional parity. Right?

Tom O'Brien

ERP

Jim it is really gr8 that you are willing to go against the orthodoxy of the church of one of the popular erp SaaS.
ERP (Enterprise Resource Planning) is one of the most renowned and trusted software for growth of business worldwide, ERP gives your organization better visibility to control over what is going on in your business. The ERP enables you and your people to make business decisions with greater confidence.

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