SaaS provides significant advantages over traditional on-premise software including lower upfront and ongoing costs since there is no need to purchase hardware or invest in infrastructure, faster deployment times by eliminating setup of hardware and software, and reduced administrative burden as maintenance and upgrades are managed by the SaaS provider. Industry analysts and reports recognize SaaS as the predominant delivery model for talent management and performance management systems that allows for faster innovation, lower costs, and faster time to value especially for companies with shrinking budgets.

1. Why Software-as-a-Service (SaaS)? Transparency and Lower TCO No hidden costs or fees. No need to purchase hardware or invest in infrastructure. Fixed-bid implementation model prevents costly overruns. Rapid Deployment By eliminating the upfront work required to setup hardware and install software, you can reduce your time to “go live” and start driving value more quickly. Reduced Administrative Burden All network maintenance and upgrades are managed on an ongoing basis so your IT staff is free to work on other strategic initiatives. Faster Innovation Since all customers leverage the same code base, new features can be easily delivered every month at no additional cost. Configuration not Customization Highly configurable applications provide a tailored solution without customizing the code. Get the benefits of customization but avoid the costs of deploying and maintaining custom code. Advanced Security Secure and reliable software and SAS70 Type II certified data centers protect the confidentiality, integrity, and availability of customer information.

2. Why SaaS in an Uncertain Economic Times? The significant advantages implied by SaaS in good times are only magnified in a downturn… SaaS aligns perfectly with the needs of companies faced with shrinking budgets, fewer internal IT staff to support new initiatives, and a high threshold to justify technology investments. Upfront costs are dramatically lower since SaaS requires no hardware/infrastructure investment, and implementation and ongoing maintenance costs are dramatically reduced since “true SaaS” avoids the custom software trap. ...And, the end result is faster time-to-value for the customer which is critical in this environment.

3. Industry Consensus on SaaS Advantages “ SaaS is the predominant delivery model for performance management systems. Adoption of the SaaS model has dramatically increased the pace of product innovation and the frequency of product releases in the market.” “ SaaS can be highly configurable . Over the last 6-9 months, several leading SaaS solution providers have extended product capabilities to support organizations with highly “customized” and varied global performance management practices.” -- Bersin, The Essential Guide to Performance Management Systems (October 2008) “ As sourcing professionals make purchasing decisions in times of economic slowdown , SaaS can benefit their organizations by offering a deployment model that lowers near-term expenditures, allows buyers to prove the value of a solution before committing to it, and shifts significant aspects of the investment risk from the organization to the SaaS provider .” --Forrester, Firms Can Benefit From SaaS In Times Of Economic Uncertainty(July 2008) “ IDC makes note of the growing popularity of the SaaS model . Surveyed vendors report that, on average , 82% of their performance management implementations are delivered via this model. This is up 20 points from 62% just one year ago, demonstrating that SaaS is steadily becoming the norm for talent management delivery .” -- IDC, Worldwide Workforce Performance Management 2008-2012 Forecast : Still a Hot Market (May, 2008) “ SaaS has become a mainstream delivery model for companies of all sizes . Vendors that offer SaaS are expected to capture market share and maintain staying power..” “ SuccessFactors ’ offers its Talent Management suite through a SaaS model. Its ” pure on-demand ” solution results in faster innovation , reduced administration , and decreased costs for customers .” -- Bersin, Talent Management Suites Report (January 2008)