Small and mid-sized businesses are sometimes ignored in the data that looks at cloud adoption, as attention goes to global corporations deploying enterprise-wide ERP solutions across their widespread landscapes. But whether they started with customer relationship management (CRM), e-business solutions that support online sales, financials or ERP, smaller companies are increasingly adding solutions – such as talent management or core HR to their environments.
Our recent study “Talent Optimization for the Global Workforce: The Market for Talent Management Systems 2014” demonstrates that companies of all sizes are looking to the Cloud for their talent solutions.1 For the SMB market, the reasons are particularly compelling:
Decreased need for internal IT support; infrastructure management is the responsibility of the vendor
With that shift in responsibility, is also the shift in cost: capital expenditures drop as that infrastructure burden is diminished
Scalability is enhanced, with increased or decreased capacity as use changes, acquisitions are made, or reductions in force are managed.
Keeping current is eased, as the software upgrades are accomplished at the vendor end—with any refreshing in the hardware also the vendor’s responsibility
And this is a winner in my book: a better capability for disaster planning and business continuity. An area I studied extensively in the past, the resources for ensuring business continuity in the face of flood, fire, earthquake, terrorism, tsunami, — you name it—are often unavailable to smaller businesses. Many businesses that have a catastrophic event never recover. Cloud solutions can help: one company that was severely affected by Hurricane Katrina was able to regroup and stay up and running immediately because all its data and transaction capability was supported by a Cloud ERP program.
Our recent research shows that companies large and small will be selecting new software this year – including core HR and all areas of talent and workforce management. The market study, cited here, indicates that many of those new solutions will indeed bring many small and mid-sized companies increasingly under “Cloud cover.”
1 “Talent Optimization for the Global Workforce: The Market for Talent Management Systems 2014.” Katherine Jones. Bersin by Deloitte, Deloitte Consulting LLP. June 2014.
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