Sunday, March 10, 2013

Moving Talent Management To The Cloud Can Reduce Cost By 47%

At HR Insider 2013, SAP SuccessFactors Hybrid customer, Coca Cola Enterprises hosted a customer discussion. The key take away for me from the session was a fact shared by one customer. They said that they compared the costs of implementing and maintaining an OnPremise talent management system with a cloud based talent management system and found out that they can save 47% by simply going with the cloud version. This was a small implementation for about 500 people.

I have also heard from large customers with over 300,000 employees that their projected cost savings was about $60 Million over three years. I did not get a percentage from them. But I guess it might be close to 50% in cost savings compared to an OnPremise implementation. Such cost savings combined with innovation and agility are key reasons why I believe most organizations will move their talent management applications to the cloud.

For thousands of organizations the HCM picture will look a bit like this.


2 comments:

  1. What are the cost implications if you already have an core on-premise solution?

    ReplyDelete
  2. This is an good reference to show to all the potential customers of SF...Can you share more details which can strike the chord with other customers.

    ReplyDelete

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