This webinar discusses the differences between on-premise and cloud-based human capital management (HCM) systems. It begins with defining key terms like HCM, on-premise, and cloud-based systems. Requirements around technology, security, scalability, integrations, and implementation are compared for on-premise versus cloud options. Total cost of ownership is also evaluated. The presentation concludes that the best option depends on available resources, data criticality, organization size and culture, integration needs, customization requirements, budget, and regulatory factors. Attendees are invited to contact the presenter or Net@Work for more information on selecting an HCM system.

1. Start Time: 2:00pm EST
Live Webinar:
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Welcome!
Employer Solutions

2. | Employer Solutions
Some Housekeeping Items
• This presentation is one hour long
• All phone lines are muted
• Please use the question box to ask questions
• Copies of the slides are available under Handouts
• An on-demand video recording of this session will be
available at www.netatwork.com

3. | Employer Solutions
Today’s Presenter
Mark Boutilier
Senior Solutions Engineer
Net@Work Employer Solutions Practice
Email: mboutilier@netatwork.com
Phone: 207.480.4805 (direct)
LinkedIn: https://www.linkedin.com/in/mboutilier/

4. | Employer Solutions
Cloud Versus On-Premise
Which Human
Capital
Management
Delivery System
Makes Sense for
Your
Organization?

5. | Employer Solutions
Terms: HCM – Human Capital Management System
• Also referred to as an HRMS (Human Resource Management System)
or HRIS (Human Resource Information System)
• Typically includes:
• HR Benefit Administration
• Payroll
• Time Off
• Time and Attendance
• Talent Acquisition (Recruiting, On-boarding)
• Talent Management (Performance Appraisal, Training, Succession Planning).

6. | Employer Solutions
Terms: On-Premise
HCM system that utilizes company IT resources to function:
Hardware: Servers and Workstations
Software: Database Storage and Management
Staff Time: IT Staff (In-house or 3rd Party)
May be physically located on company premise or hosted on remote
servers.

7. | Employer Solutions
Terms: Cloud-Based Systems
Software and data are located and maintained on remote servers “in
the Cloud”.
• Accessed via a web browser and internet connection
• Typically sold on a Software-As-A-Service Model –SAAS or “Per
Employee Per Month” Cost.

8. | Employer Solutions
On Premise HCM

9. | Employer Solutions
Sage HRMS Solutions

10. | Employer Solutions
Hosted HCM
(“On-Premise”
in the Cloud)

11. | Employer Solutions
Cloud-Based HCM
FeaturesandCustomization
Cost Per Employee Per Month

12. | Employer Solutions
Sage Business Cloud People

13. | Employer Solutions
A complete end-to-end HCM platform
Included Functionality in Sage
People
Recruit and Onboarding
Team Member Management
Engagement & Communications
Performance Management
Talent Development
Resource, Succession & Salary Planning
Benefits Administration and Open
Enrollment
Time Management, Comp & Benefits
Analytics, Reporting & Dashboards
Workflow
Integration Tool (payroll / benefits feeds)

14. | Employer Solutions
Infinity HR

15. | Employer Solutions
Infinity HR

16. | Employer Solutions
Requirements to Consider: Technology
• Do you currently have available hardware capacity (that is, servers and workstations)?
• Do you have software resources for data storage (for instance, Microsoft SQL)?
• Do you have available IT staff resources to install, maintain, and update your system?
• Do all users have reliable Internet connection?
• Do you have other systems (on-premise or in the cloud) that will require integration?
• Will your HCM system require industry-specific customization?
• Are there any regulatory requirements concerning where your data is located?
• Is there an organizational culture bias for or against cloud deployments?

17. | Employer Solutions
On-premise versus Cloud Technology
Servers: $11,598
MS SQL: $ 2,650
$14,248*
IT Time: $??,???
* Rough estimate based on Internet search.
Reliable High-Speed Internet Access
Depreciable Asset

18. | Employer Solutions
On-Premise
• Updates responsibility of IT
• Controlled rollout of changes
• IT responsible for disaster
recovery
• Updates may disrupt users
• Security requires additional
software and resources
Cloud
• Cloud vendor updates software
• Updates are more frequent
• Cloud vendor plans for server
redundancy
• Updates can be done 24/7/365
• Security is built into Cloud sites.
Patching and Maintenance

19. | Employer Solutions
Cloud Security Concerns
Data Breaches
Hijacked
Accounts
Insider
Threats
Malware
Injection
Insecure
APIs
Denial of
Service

20. | Employer Solutions
On-Premise
• ”Behind the firewall”
• Direct control of the data
• Security standards addressed
by internal staff
• Additional software required
Cloud-based
• Protected by experts
• Data distributed on redundant
servers
• Security standards part of doing
business for cloud providers
Data Security

21. | Employer Solutions
Web-Based Attacks
27.8
incidents
53% Hit
with attacks
Cloud-based
Service Providers
61.4 incidents
44% hit
with attacks
On-
Premise
Source: Alert Logic's Fall 2012 State of Cloud Security Report

22. | Employer Solutions
Bottom Line
The physical location
of your data matters
less than the means of
access.

23. | Employer Solutions
Option Considerations
•Compliance
•Scalability
•Integrations
•Implementation.

24. | Employer Solutions
Compliance
• HIPAA
• SarbanesOxley
• Encryption Requirements
• Server Location (requirement that data be stored in US)
• Industry Regulation (for example, banking).
On-Premise
Staff Cloud
Provider

25. | Employer Solutions
On-Premise
• License Purchased in blocks
• Planning required
• May require hardware upgrade
• Outgrow solution, require
additional modules or
programming
Cloud-based
• Licenses by employee count
• Easily scaled up (or down)
• No additional resources required
• Typically all-in-one, turn on
modules as needed.
Scalability

26. | Employer Solutions
On-Premise
• Relatively simple file transfers
• Easier to develop and test
integrations
• Utilize in-house IT expertise
Cloud-based
• More complicated APIs
• Connections often already built
• Integrated system may already
be in the cloud.
Integration With Other Systems

27. | Employer Solutions
On-Premise
• Requires IT support
• Requires discovery and testing
• Requires user participation
• Allows for easier custom
configuration
• Takes more time
• Costs More
Cloud-based
• Work done remotely via web
• System already tested and
provisioned
• Usually requires less user
participation
• Configuration choices “limited”
• Takes less time
• Costs less.
Implementation

28. | Employer Solutions
Ownership Cost Breakdown
Implementatio
n &
Customization
41%
Software
License
16%
Hardware &
Infrastructure
24%
IT Staff
6%
Maintenance
13%
On-Premise
Subscription
68%
Implementatio
n &
Customization
32%
Cloud-based

29. | Employer Solutions
Total Cost of
Ownership
Source: https://www.softwareadvice.com/tco/
New Server

30. | Employer Solutions
Conclusions
Availability of skilled resources during implementation & support phases.
Critical nature of the data.
Size & culture of the organization.
Nature of integration requirements.
Requirement for customizations.
Budget
Any regulatory constraints.

31. | Employer Solutions
Let Us Help
You Decide

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33. | Employer Solutions
For More Information on HCM Systems
800-719-3307
www.netatwork.com
netatwork.com/blog
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34. | Employer Solutions
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http://www.netatwork.com/online-emails/hrms-webinar-schedule/