Ah, yes – the Cloud! The image of wispy nimbuses floating care-free in the heavens plucking away all of our technological sorrows is enough to make any tech sales rep’s heart flutter. We’ve all been exposed to the dream. So what’s the reality?
What is the cloud?
Here’s my brief and unofficial history of the Cloud. First there was hosting: Don’t want to build or order computers yourself? No problem! We’ll buy and maintain them for you and you put whatever you want on them. Then there was Software as a Service (SaaS): Why buy and install expensive software yourself when you can rent just a little at a time? Meanwhile things like service-oriented architecture had been creeping into the internet, web 2.0 made it more popular, and Smart Phones that preferred this world full of fat servers full of APIs that supported skinner clients started to become the most popular way to internet. Finally, someone said, “You know what? We need a nebulous name to categorize all of this stuff together so we can sell all this to people more easily –and what is more nebulous than a cloud?” Thus, the Cloud was born.
My description of the Cloud isn’t precise and that’s the point. Lots of companies are slapping a cloud-shaped logo on whatever they can and this is often confusing people and deflating the tangible benefits of the cloud.
What are the tangible benefits of the cloud?
The below are common to most cloud products, but as I promised in Part 1 of this series, let’s use SuccessFactors as our pertinent example for all of these points:
Will it really pluck away all of our technological sorrows?
There are very real benefits to cloud solutions such as our SuccessFactors example, but nothing’s perfect:
What functionality does SuccessFactors Offer?
SuccessFactors has continually made a name for itself as a market leader in Talent Management software. Talent Management usually refers to systems that track employees as “Talent”- focusing on their skills, the development of those skills, and their value to the company. The basic business pitch here is to attract top talent (Recruiting), organize your talent by assigning and tracking their achievement of business goals (Goal and Performance Management), and then reward your talent accordingly (Compensation). Then you can also analyze where your talent gaps are now or will be in the future (Analytics and Planning), develop your talent to fit those needs (Career Planning and Development) and make decisions about who is developing into top leadership or into key positions in the company (Succession Planning).
A bit newer to the scene for SuccessFactors is Employee Central. This serves as a “Core” HR transactional system – much like what SAP HCMPersonnel Administrator (PA) and Organizational Management (OM) modules do. While the product is newer, it is maturing rapidly. SAP has shifted a lot of resources to developing this product. SAP has long been considered a market leader in “Core” HCM so the idea that SAP can make this a robust product is not illogical.
What HCM Functionality does SuccessFactors not offer?
As of today, SuccessFactors does not offer other “Core” HCM functionalities like hourly time entry management, payroll, or benefits. However, there are clever solutions for integrating SuccessFactors with SAP on premise or hosted instances that contain these functionalities. SuccessFactors partners with other vendors as well to fulfill these needs.
Is SuccessFactors the only Cloud product offered by SAP relevant to HR?
It is central to SAP’s cloud HR strategy, but not the only cloud product. If you take a look at this SAP HCM Cloud page, you will see most of the page dedicated to various SuccessFactors modules. But if you scroll way down to the bottom you see links to “Related” products like HANA Cloud Platform or HANA Enterprise Cloud. These are relevant options to look at and often get underplayed! For example, I’ve been helping work on a benefits solution that runs on the HANA Cloud Platform and can integrate with SuccessFactors Employee Central or SAP On Premise.
What the heck is HANA?
It is SAP’s flavor of an in-memory computing database. It stands for High-Speed Analytical Appliance. It is basically a database that holds data in RAM so that it runs faster. SAP now slaps the name “HANA” on anything that runs on this database.
What is HANA Cloud?
Essentially this term is used for any SAP applications that run on top of the HANA database that are offered as a service. For example, HANA Cloud Integration (HCI) is simply an instance of SAP Process Ingetration (XI for us old schoolers) that uses HANA as a database (as opposed to MSSQL or Oracle) and is hosted by SAP (making it “Cloud”). HANA Cloud Integration (HCI) is a great option for Core SAP HCM customers who want to integrate with SuccessFactors Talent management but don’t have PI. This gives them an option to rapidly get a PI instance up and running to use many of these standard integrations.
Next in the series, I will cover some of the newer on-premise technologies like UI5 and HR Renewal and also show how these may be sneaking their way into the cloud
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