1) Software-as-a-Service (SaaS) is a software distribution model where applications are hosted by a vendor and accessed online by customers over the internet. 2) True SaaS provides significant benefits over traditional installed software like lower costs, greater flexibility, easier implementation, and automatic updates. 3) Cornerstone is a leading provider of SaaS-based talent management solutions that helps organizations empower their employees and increase productivity through features for learning, compliance, performance management, and other areas.

1. Software-as-a-Service (SaaS)
LEARNING COMPLIANCE PERFORMANCE COMPENSATION SUCCESSION ANALYTICS
Unleashing the Power of On-Demand
The software industry has passed a critical inflection point where on-demand software, or software-as-a-service (SaaS), has consider-
ably changed the ways in which vendors deliver specific technology solutions -- and the ways in which customers evaluate them. This
evolution is notably affecting the development and deployment of high-end software applications to large, global enterprises.
This fundamental change in the way business applications are delivered also changes the mission and value of IT – for the better.
With real SaaS delivery, IT managers move from a reactive focus on system and hardware maintenance and uptime to proactive,
strategic, high-value innovation and process management. In short, a move from tactical to strategic.
Only one aspect of real SaaS is the technology. True SaaS also impacts product delivery, service provision, vendor valuation, reten-
tion rates, cost, deployment timeframes, and core client satisfaction.
What Is Software-as-a-Service?
On-demand or SaaS delivery is a software distribution model in which applications are
hosted by a vendor or service provider and made available to customers over the
Internet.
Thanks to the rapid development of these web-based services, savvy organizations are
pushing aside traditional, cumbersome legacy applications in order to realize rapid,
tangible business benefits.
The on-demand delivery model stands in contrast to customary on-premises or
installed software offerings, which typically require large investments in time,
personnel, hardware, and consulting.
True SaaS versus ASP
In recent years, the marketplace has witnessed the development of so-called “false migration” efforts of legacy software vendors. In this case,
legacy software code is simply ported to a single-tenant model to an offsite hosting facility. Repurposed (and remarketed) in this manner, old
on-premises software fails to capture the real benefits of the SaaS model (naturally, these costs of false migration do not disappear and are
usually passed along to the client). The key differences tell it all:
ASP Real OnDemand (SaaS)
• Client-server applications with HTML front-ends added as an • Vendor hosts multiple customers on a load-balanced farm of identical
afterthought instances with each customer's data separated
• Each customer has own customized version of the hosted application • Customers use metadata to highly configure their specific instance
and runs its own instance of the application on the host's servers
• Limitlessly scalable by increasing the number of servers and instances to
• More in common with traditional on-premise applications than with meet demand
true SaaS
• Scalability does not require architectural changes
• Data sharing with other applications is limited
• System upgrades are deployed instantaneously – no patches, no
• Generally not written as net-native applications lagging behind versions
• Performance and scalability are limited • Clients can choose which functionality to “turn on” and which to
leave off – total ownership of software
© Cornerstone OnDemand, Inc. All Rights Reserved.  www.CornerstoneOnDemand.com  +1(888) 365-CSOD  +1(310) 752-0199

2. Software-as-a-Service (SaaS)
LEARNING COMPLIANCE PERFORMANCE COMPENSATION SUCCESSION ANALYTICS
On-Demand with Cornerstone
Cornerstone is the largest pure-play on-demand integrated talent
management system in the industry. The company helps organizations
to empower their people and increase workforce productivity by offering
a comprehensive suite of talent management solutions for learning,
compliance, performance, compensation, and succession management
along with powerful analytics.
Cornerstone’s multi-tenant, multi-user on-demand software architecture
provides clients with minimal IT costs, high flexibility, great reliability,
and the lowest total cost of ownership. Unlike other talent management
systems, Cornerstone is fully deployable across the entire enterprise
within weeks.
With Cornerstone’s true software-as-a-service offering, clients can
choose which new features and upgrades to deploy in their custom
environment. No one size fits all, as Cornerstone supports the most
complex deployments.
Real SaaS, Real Bene ts
Delivering Business Solutions Microsoft’s Four-Level SaaS Maturity
Model*
• Service, Not Software. No software to install or maintain. Ever.
Level I: Ad Hoc/Custom
• Flexibility / Ease-Of-Use. Immense flexibility in configuration,
self-customization, and general ease-of-use. Level II: Configurable
• Implementation. Large-scale enterprise implementations measured
Level III: Configurable, Multi-Tenant-Efficient
in days and weeks – NOT months and years.
Level IV: Scalable, Configurable, Multi-Tenant-Efficient
• No Patches or Upgrades. On-demand applications do not require
costly patches, service interruptions, or annual upgrades.
Cornerstone OnDemand is Level IV.
• Scalability. Companies of all sizes are taking advantage of real SaaS,
scaling to hundreds of thousands of global users. * Source: Building Distributed Applications, Architecture
Strategies for Catching the Long Tail (Frederick Chong and
• Systems Integration. Today’s web services ensure tight linkages with Gianpaolo Carraro), April 2006
all manner of systems.
Making It Strategic
• From Tactical to Strategic. IT can become more strategic by
focusing on high-value management and best use of information
technology.
About Cornerstone OnDemand
• Software Acquisition Risk Management. SaaS applications don't
require the deployment of a large hardware and data infrastructure. Cornerstone OnDemand helps organizations to empower
their people and optimize workforce productivity with a
comprehensive suite of integrated talent management
Building Long-Term Vendor Relationships solutions for learning, compliance, performance,
compensation and succession management, as well as
• Partnership & Incentives. By building in productive incentives for the robust reporting and analytics.
vendor to provide top-level products and services, the vendor must
constantly prove the value of its product in a way that does not align
with the installed software offerings of the past.
For more information, please visit us at:
 www.CornerstoneOnDemand.com
© Cornerstone OnDemand, Inc. All Rights Reserved.  www.CornerstoneOnDemand.com  +1(888) 365-CSOD  +1(310) 752-0199