Fosway Group Learning and Talent in the Cloud

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5/19/2016 1© Copyright Fosway Group Limited. All Rights Reserved.
Learning and Talent in the Cloud
David Wilson, CEO david.Wilson@fosway.com @dwil23

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Focus for today
What is the Cloud and why is it relevant to L&D?
How is the Cloud impacting learning and
talent solutions and supply options?
What are some of the barriers to Cloud solutions and how
can you address them?
What impact does the Cloud have on total cost of
ownership,integration and innovation?

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Cloud computing defined:
Cloud computing is ‘the use of computing resources (hardware and software)
that are delivered as a service over a network (typically the Internet)’.*
These services are broadly divided into three categories: Infrastructure-as-a-
Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS).
The name comes from the use of a cloud-shaped symbol as an abstraction for
the complex infrastructure it contains in system diagrams.
Cloud computing entrusts remote services with a user's data, software and
computation.
* Source: Wikipedia

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Software-as-a-Service
‘Software that is owned, delivered and managed remotely by one
or more providers’
Where:
- The application is based on a single set of common code and data
definitions
- It is consumed in a one-to-many model by all contracted customers
- It uses a pay-for-use model or a subscription model based on usage
metrics
* Source: Gartner

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Single or multi-tenancy?
Single Tenancy
Shared Tenancy
Multi Tenancy

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Reasons for Cloud adoption

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learning and talent?
So what about…

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Fosway research
‘SaaS will have a significant impact on the
Learning and Talent Systems market, and is a
relevant and viable option for Enterprise
customers as well as the Mid-Tier market.’
* Software-as-a-Service: Impact on Learning & Talent Systems - Fosway Core Insights, April 2009

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Specific drivers
Learning and talent often not viewed as strategic or mission-
critical targets for IT
- Significantly reduces entry costs and resources
- Reduces IT resource and overall investment
Learning and talent organisation able to control innovation
choices directly
- Not dependent on IT to enable
- Always on the latest version (versionless) with the latest functionality
- Avoids version lock-in

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Specific drivers
Cloud/SaaS may be a better fit in a fragmented function –
especially relevant to Learning
- Lower cost of entry for sub-units and in total
- But automatically running on a common system
- Allows a Federated operating model
More than Software
- Pre-integrated 3rd Party e-learning catalogues
- Global distribution infrastructure
- e.g. content acceleration services (such as Akamai)

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Conflicting pressures
Cloud/SaaS
Learning and Talent Systems Orientation
Model
The Pressures that contribute to polarities of
On-premise or Cloud/SaaS implementations
IT Independence
OpEx Focused
Service Orientated
Fragmented L&D
On Premise
IT Dependency
CapEx Focused
Functionality Orientated
Centralised L&D
Cultural / Process Diversity
Cultural / Process
Conformity
Ease of InnovationLevel of Direct Control

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Cloud/SaaS Force Field Analysis
The pressures for deciding on-premise or Cloud implementations
The
Tipping
Point
Barriers
•Security
•Data Protection
•Scalability and Performance
•Integration with On-Premise
Apps
•Controlling Upgrades
•Inability to Customise
Benefits
•IT Costs & Economies of Scale
•Lower Overheads
•Faster Innovation
•Community of Interest
•Customer Satisfaction
Drivers
Pressures For Cloud/SaaS
Obstacles
Pressures Against Cloud/SaaS

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Reality today
All major Learning and Talent Management
Vendors now lead with Cloud based solutions
- Estimated to be 75% plus of new business
Pure play L&TM Cloud vendors growing fastest
at 40-60% per annum
Huge market consolidation
Recent L&T Cloud
Acquisitions
Taleo buys Vurv
Kenexa buys BrassRing
Taleo buys Learn.com
SuccessFactors buys Plateau
Lumesse (StepStone) buys
MrTed
SumTotal buys Softscape
SAP buys SuccessFactors
Lumesse buys Edvantage
Group
SalesForce.com buys Rypple
Cornerstone buys Sonar6
Kenexa buys OutStart
Oracle buys Taleo
ADP buys Workscape
IBM buys Kenexa…

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Questions for adopters

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Questions for corporates
All major Learning and Talent Management
Vendors now lead with Cloud based solutions
- Estimated to be 75% plus of new business
Pure play L&TM Cloud vendors growing fastest
at 40-60% per annum
Huge market consolidation

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Questions for corporates
What is the true cost of implementing and managing systems
internally?
What other systems do I need to integrate with to make a
Cloud/SaaS solution viable? Are these located On-Premise or
externally? Are multiple systems in use throughout the business?
Is there unique functionality that is very specific to your
organisation or industry? Which are unlikely to be met by out of
the box (On-Premise or Cloud/SaaS)?

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Questions for suppliers
How many customers and users? What is size of customer organisations? Can
you give me examples of similar customers? How long have they been on your
service?
Do you provide a multi-tenant solution or single system per customer?
- If multi-tenant
- How do you handle new releases? What warning do I have of changes to the system? Can I choose not to
activate changes in functionality?
- What configuration limitations are there for individual customers?
- How can I test the changes prior to live implementation?
- What happens if platform updates are incompatible with our client estate?
- If single tenant
- How scalable is each customer instance? What is the largest customer instance you have currently?
- How do you handle upgrading customer instances? Can I choose not to upgrade?
- What settings cannot be changed at individual customer level?

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Questions for suppliers
What experience do you have of integrating with my HR System(s), and my
Learning & Talent Systems or content?
How do you handle customised requirements? Is customisation possible and
how? How might I be impacted by customisations from other customers?
What proportion of your revenue comes from Cloud/SaaS? What proportion
comes from Professional Services?
What is your customer retention percentage on a year on year basis? Is this
information independently audited?
What is a likely implementation outline for a customer of my requirements?
What resources do I need to implement and to run the system thereafter?

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In summary
Cloud/SaaS is now the de facto ‘go-to’ model for Learning AND
Talent Management systems
- For all sizes of organisations SME to Enterprise
- High adoption shift
There are many advantages/benefits from Cloud as a
deployment model
- Lower cost of entry, better TCO, less IT dependency, faster and
greater innovation, global reach….
But there are also some barriers and issues
- concerns on data protection and security, lack of customisation
- Also some geographic variation

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Thank you and questions?
Fosway Group
Europe’s #1 HR Analyst
Unusually direct analysis and advice
David Wilson, CEO david.Wilson@fosway.com @dwil23

Fosway Group Learning and Talent in the Cloud

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