SuccessFactors On-Premise: A Fading Option in the Cloud Era

SuccessFactors, a cloud-based Human Capital Management (HCM) solution from SAP, has become the go-to platform for many organizations. But what about organizations still running SuccessFactors on-premise?

This blog post will explore SuccessFactors on-premise, its pros and cons, and why it might be time to consider a cloud migration.

What is SuccessFactors On-Premise?

Traditionally, SAP offered SuccessFactors as an on-premise solution. This meant companies installed and ran the software on their servers, giving them complete control over the system.

Pros of SuccessFactors On-Premise

• Customization: On-premise deployments offer greater control and customization than the cloud version. Organizations can tailor the system to their specific needs and workflows.
• Data Security: Some companies, especially those in highly regulated industries, prefer the perceived security of having their data on-premise.

Cons of SuccessFactors On-Premise

• Cost and Complexity: On-premise solutions require significant upfront investment in hardware, software licenses, and IT staff to maintain the infrastructure.
• Scalability: Scaling on-premise systems to accommodate growth can be challenging and expensive.
• Outdated Technology: SAP is constantly innovating and adding features to the cloud-based SuccessFactors, but on-premise users miss out on these advancements.
• Security Concerns: While some see it as an advantage, managing your security infrastructure can be complex and requires ongoing vigilance against cyber threats.

The Cloud is the Future

Cloud-based HCM solutions like the cloud version of SuccessFactors offer several advantages:

• Reduced Costs: Cloud eliminates the need for upfront infrastructure investment and reduces IT maintenance burdens.
• Automatic Updates: The cloud ensures users can access the latest features and security patches.
• Scalability: Cloud-based systems are easily scalable to accommodate growth.
• Accessibility: Cloud allows employees to access HR functions anytime, anywhere, on any device.

Considering a Move to the Cloud?

SAP is actively encouraging on-premise customers to migrate to the cloud. They offer various resources and programs to make the transition smooth.

Conclusion

While SuccessFactors on-premise offered benefits in the past, the cloud presents a compelling alternative. With its lower costs, scalability, automatic updates, and improved accessibility, cloud-based HCM is the future of HR management. If you’re still on-premise, it might be time to consider a cloud migration and unlock SuccessFactors’ full potential.