As Oracle acquires Taleo – corporate recruiting software, the niche HR software market has become the buzzword. In this space, business management software producer SAP is a frontrunner in the cloud-based software market, where companies ‘rent’ software over the internet rather than installing it on their own machines. SAP’s acquisition of SuccessFactors- employee performance software and Oracle’s latest deal cement three major trends happening in the HR technology space. The first being that corporate software is well and truly moving to the cloud as more and more companies are now starting to replace their core infrastructure software with new cloud products. The second trend is that the market for integrated talent management software has matured and it is not necessary for companies to purchase a wide variety of tools to help with recruiting, performance management, training management, compensation management, and workforce planning – all these products are now integrated into complete talent management suites. Given the availability and variety of providers offering cloud based software there will be an increasing trend of HR customers replacing old systems with competitively priced cloud software.
The chief motivators for organization to implement cloud technologies include - no licensing fees; no requirement of additional infrastructure; minimal training; maintenance provided by the provider and free trial periods.
Source: HC Online