Sunday, August 03, 2014

The Three Cloud Deployment Models For SAP and SuccessFactors

For integrating SuccessFactors, which is SAP’s application in the cloud for the human resources line of business, with SAP ERP HCM and SAP ERP, SAP’s integration product teams have identified three main deployment models. These are the Talent Hybrid Deployment model, the Full Cloud HCM deployment model and the Side-By-Side HCM deployment model.




Talent Hybrid deployment model

There are over 14000 customers using SAP ERP HCM for their employee administration needs. Over 700 of those customers are using one or more SuccessFactors Talent solutions in the cloud. Several more are considering the move to SuccessFactors talent solutions in the cloud, while keeping employee administration i.e., Core HR, on-premise. The Talent Hybrid deployment model is designed to help such customers.

Full Cloud HCM deployment model

There are over 35,000 SAP ERP customers using SAP ERP to run their businesses. Most of these customers use human resource management systems on-premise. Some of the human resource management systems used by these customers are built on outdated technologies that cost a lot of money to maintain. Such customers are choosing to move all their human capital management applications to the cloud, while integrating them with SAP ERP, which they use to run their core business such as banking, retail or manaufacturing. The Full Cloud HCM deployment model is designed to meet the needs of such customers.

Side by Side HCM deployment model

Many SAP customers, who use SAP ERP HCM for Core HR and SuccessFactors talent solutions, acquire companies frequently to grow their businesses. Such acquired companies most of the time use a different system for managing their employees. The cost of migrating employees of such acquisitions to the parent company’s SAP ERP system while necessary, is expensive, disruptive and time consuming. Integration of core business systems such as finance, supply chain or customer relationship management systems, always get prioritized over human capital management systems. For this reason organizations end up maintaining tens of different human resource management systems for the same organization. This leads to inefficiencies, increased cost, decreased productivity and poor talent management.

Such customers are choosing to move the human resource management systems of acquired companies to the cloud to migrate them faster, reduce operating expenses, provide a unified employee experience, and perform integrated workforce planning. In many cases, this model enables customers to try out the cloud for employee administration for a small number of employees and experience new ways to deploying software before embarking on company wide deployment of cloud software for human resource management.

The Side by Side HCM deployment model is designed to meet the needs of such customers. In a way, this deployment model is a stepping stone to the Full Cloud HCM deployment model.


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