Friday, March 15, 2013

The Role of SAP ERP HCM in a Cloud HCM Landscape

Last Monday and Tuesday I worked with four North American customers to plan their HCM road map for the next 4 years. Two of the customers are planning to move their core HR system to the cloud in two years. They said something very interesting  They have over a hundred integrations in place between their OnPremise HCM system and other OnPremise software systems. These integrations cost them millions of dollars to build.

So they wanted to keep the current SAP ERP HCM system as it it today, even when they move core-HR to the cloud and treat their existing HCM system as a HCM mini master. Uwe Simon, SVP of active global support and former head of HCM development at SAP was there as well and mentioned that doing this should not be a problem. I also discussed this with David Ludlow, the head of SAP SuccessFactors HCM solution Management and he thought there should not be any policy problems with this approach. This will save those particular customers over $5 Million each in implementation costs when they move Core HR from SAP to SuccessFactors.

When existing SAP HCM customers move Core HR to the cloud, their existing HCM system turns into a mini-master OnPremise, preserving their investment in integration with other OnPremise systems.

I wonder what our customers and partners think. Do you see any concerns?

PS: The diagram you see above is the architecture for integrating Employee Central with OnPremise HCM. The interesting thing is that the SAP HCM never actually goes away even when customers move Core HR to the cloud.

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