According to the latest Workforce.com report, the battle between legacy software and SaaS is in full swing – and customers are benefiting. No longer a newcomer or an outlier in the fight for HR client dollars, the Software as a Service model is coming into its own as a cost effective and highly versatile solution. Some industry pundits are already proclaiming that SaaS is sure to be the victor over older software delivery methods. Are they right?

Here at Emerald Software, we’re doing everything in our power to make that prediction come true. We do this by offering Best of Breed new hire onboarding solutions at a price that delivers immediate ROI to our customers. Plus, we have recently joined forces with one of the largest cloud computing providers to offer even greater scalability to clients of all sizes. Because our system is specifically architected to evolve and keep pace with technological advances, it will never become outdated like legacy applications.

Most Companies Use SaaS or Are Intrigued By the Idea

In 2009, Forrester Research Inc. conducted a survey that shows about 75% of businesses either use SaaS or express an interest in doing so. That’s a pretty good indication that the time is ripe for a permanent shift away from on-premises installation of software toward a more agile solution. This is especially important for businesses that can’t afford to upgrade their old servers to run the most modern applications. Now, they can access the latest technology hosted by SaaS vendors without the added cost of paying for new hardware. They just need a terminal and a browser.

Some Customers Still Hesitate to Switch

Almost 30% of companies that do currently use Software as a Service have implemented it in their HR realm. This should be a comforting fact for companies that currently express no interest in SaaS because they have concerns about security. Consider this: having servers in a locked room on-site doesn’t necessarily mean the data on them is more secure. A high percentage of breaches occur from within a company. The safeguards and protocols in place for keeping customer data secure on SaaS servers are continually improving to keep up with the online environment.

What Lies Ahead

There are still plenty of naysayers in the legacy software community who play on customer’s natural fear of change. A look at this chart showing common objections to using SaaS provides insight into why more education about the realities of solutions like Universal Onboarding is still critical. Some potential customers believe:

  • The pricing model is complicated (ours is a fixed per new-hire/per month fee – very simple)
  • Implementation is difficult (if complexities arise, we’re there to walk you through it)
  • Total cost of ownership may be high (this one is so totally off base it’s laughable!)

As more and more employers start looking toward new solutions, we’ll be right there to set the record straight and demonstrate the true value of SaaS.

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