Cloud Computing and HR


Yes another trend post, there might be a few more as I get my head across all that has happened in the last year or so.

Cloud Computing has been gaining momentum over the last few years, in HR it is getting some significant airtime and how could it not with the success of cloud vendors such as Workday, Rypple now part of Salesforce and Taleo now part of Oracle. However I want to look a bit further as what makes up cloud computing not really looking at at vendors, benefits or pitfalls (these could be later posts).

In simple terms Cloud Computing is basically off-premise computing, essentially where you, the customer, do not have the computing environment located physically in your offices. In reality things are far more complex than this. I first talked about Cloud Computing 4 years ago since then the industry has continued to develop its definition of cloud computing and now we seem to have a common understand and framework around the topic.

Essentially there are three relevant “flavours” of cloud computing each operating at a different level in the technology ecosystem. First Infrastructure as a service (IaaS), then Platform as a service (PaaS) and finally Software as a service (SaaS) (there are two additional layers around the network and communications infrastructure but do not really influence the application landscape).

What is IaaS? At a basic level this is where a vendor provides you a virtual server to deliver a specific application usually a web site. Essentially all of my web sites and applications run on a IaaS model provided by Rackspace Cloud. Rackspace provide me with a virtual server and I do the rest, install software, complete maintenance and upgrades. Other examples of IaaS include Amazon EC2, DynDNS and Joyent. There tend to be two types of IaaS; public and private. As part of an HR technology strategy public IaaS would usually only be included when it’s part of a broader organizational-wide IT strategy to use public IaaS.

Today most corporate IT environments have been virtualised onto a private IaaS model. This change has impacted us from a HR technology perspective as it has significantly reduced the lead time in getting new servers for projects.  Now most HR technology projects have a portion of IaaS in them, even if it is private. The benefit; gone are the days when a 8-12 week lead time is needed to have a new server ordered, delivered and commissioned by the IT department, most servers can now be delivered in a matter of hours. Another benefit is scalability, need more “grunt”? Need more memory? Need more disk space? Most can easily be added by the flick of a switch. For public IaaS offerings the service is usually delivered on a utility basis ie based on how much you use.

PaaS is when a cloud provider delivers a computing platform where applications and services can be built on top of, resulting in developers being able to focus on building cool software solutions instead of worrying about managing the hardware, operating system and databases. Example PaaS providers include Google App Engine, and Windows Azure Compute. We are starting to see a number of HR offerings being delivered on top of these platforms, specifically on the platform where you can access full-functioning HR systems, recruitment solutions and learning management systems along with smaller apps that can site onto of Salesforce to providing LinkedIn information as part of the sales process.

Finally SaaS is the layer in which most people interact with Cloud Computing. Here the provider offers their application to you the user across a network, usually the Internet, and you do not need to worry about installing and running the application on your own computers or those of IaaS providers. Most of the time you gain access to the software via a subscription model, but not always. It is at the SaaS level we see the most impact on HR Technology Strategy. Today you can run your entire HR Systems environment “in the cloud” through solutions such as Workday, SAP (Cloud Global Payroll and Employee Central), Oracle Fusion to just a specific HR process using one of the vast range of point solutions.

In Australia we also have a huge marketplace of SaaS vendors covering the whole spectrum of HR and Payroll management including long time players such as PageUpPeople,, Northgate Arinso and newer vendors like Recruitloop, Sherpa or murmur. If you are an Australian business looking at cloud computing for HR there is no reason you should not be able to find a solution to suit your requirements and most likely that solution will be Australian made.

The biggest issue with SaaS is there are so many vendors to choose from, do you look towards a full service offering or just point solutions? Do you go with global vendors or local vendors? This is where you need a clear strategy around your HR technology program and how it aligns with your not just your HR strategy but also IT and business. Cloud computing offers significant ROI when deployed for the right reason to support clear business objectives.

In summary from an HR perspective we are seeing cloud computing infiltrate at the bottom layer through private-IaaS and at the top layer through SaaS. If you do not have some form of cloud computing in your HR technology landscape today you will in the very near future.