Saving Time and Money with a Cloud Based HCM System

Saving Time and Money with a Cloud Based HCM System

Cloud based software (also referred to as software as a service, or SaaS) has been increasing in popularity throughout the years as the programs have developed and demonstrated their versatility and myriad of benefits. According to Mashable, the cloud is “a network of servers, and each server has a different function”. This means that any information that is saved, is not stored on your device’s internal memory, but is instead stored on a server network in an undisclosed location. To read more about the cloud, see this helpful blog.

Benefits Administration

Laws and regulations regarding benefits administration are constantly changing. Cloud software can save a significant amount of time and money by offering automatic updates. These updates are administered through your internet connection, as opposed to an on-premise system that would have to be updated by an internal IT employee or by paying your HCM solution provider to send out an employee to update your system.


The cloud offers top-of-the-line security benefits. Monthly subscription fees per organization allow the software provider to utilize the latest security technologies that individual organizations are most likely unable to afford on their own.

Another security benefit is that all data is stored in a highly secured, undisclosed location. The world’s leading provider for cloud services is Amazon Web Services. Amazon mirrors their application in two different geographic regions as well and backs up all data in three different locations for quick and easy recovery in case of a disaster.


Cloud computing allows for decreased costs and increased profits. An on-premise system requires the purchasing of expensive hardware to house the program. Additionally, the maintenance of the system is costly because an organization must employ IT professionals to regularly monitor and update the program, or pay the solution provider per hour to come on premise and maintain the system for the organization. Cloud based software allows organizations to reduce their costs because they do not need the hardware nor the employees to maintain it.

A study by IBM shows that organizations using cloud computing are “reporting almost double the revenue growth and nearly 2.5 times higher gross profit growth than peer companies” that are using on-premise systems. These cost savings are increasing the demand for cloud computing software.

Technology is rapidly advancing, and in the software sector, cloud based applications are leading the way of change. These changes have led to increased efficiency and profit for organizations that have adopted the cloud. Gartner Surveys predicts that on premise systems will decrease from 34% (today) to 18% by 2017, while cloud based systems are anticipated to grow 46% in 2015 and 24% in 2016.

This DATIS Blog was written by Carley Donovan, DATIS, on May 13th, 2015 and may not be re-posted without permission.

Written by Carley Donovan