HCM systems have come a long way in the last five years. With expansive cloud-based functionality and enhanced mobile and social capabilities, these new platforms help HR teams become powerhouses of efficiency, and create amazing candidate and employee experiences.
At the same time, HR organizations continue to deal with legacy systems they’ve outgrown. They realize these systems need better analytics, deeper talent management capabilities, and additional mobile or global functionalities.
If a big-bang rip and replace is not an option, how can they get access to some of the latest functionalities in a cost-effective way?
Cloud co-existence, or using cloud applications alongside conventional on-premise legacy systems, can be a beneficial model for second-generation HCM strategies.
Per a recent study by the IBM Institute for Business Value, 54% of executive respondents said a lowered total cost of ownership is the largest reason for using a hybrid cloud platform.* But cost isn’t the only reason why cloud coexistence is gaining traction.
A move to the cloud using a hybrid or co-existence model allows companies to adopt the advantages of the cloud gradually while still maintaining the custom requirements of their established on-premise legacy systems.
Why does coexistence of cloud and on-premise make sense?
Dip a toe in cloud waters: Cloud coexistence lets HR teams test the waters of cloud usability and functionality by adopting it for individual modules of their HCM system, such as Compensation or Benefits. They can take advantage of some of the best-in-class processes and mobile and social functionality the cloud offers without disrupting the entire HR organization and toolsets.
Maintain customizations: Some organizations have years of customizations built into their legacy systems that may not transfer to the cloud—or that would require major change management processes across their enterprise. Cloud co-existence can enable newer mobile, social and other functionalities available in the cloud-based applications/modules while maintaining their legacy systems and processes for other business processes.
Gain much needed functionality: In the past, the initial implementation budget for a new HCM system didn’t include all modules the software offered. We have seen this time and time again: core HCM systems were implemented with the hopes of adding more functionality later. However, budgets, time, and competing initiatives tend to get in the way. By adopting a cloud coexistence strategy, organizations can move certain applications to the cloud and gain missing functionality
Leverage cloud on a reduced budget: HR teams may be chomping at the bit to move to the cloud to provide a better overall experience for their firm, however the organization is not positioned to provide the financial investment for a full replacement of their on-premise legacy HCM. Instead of limping along, moving some functions to the cloud can offer the enhanced functionality and benefits this platform can offer while still maintaining use of their initial investment and showcasing the value of modern HCM functionalities and insights to executive leadership.
With cloud coexistence, organizations can have the best of both worlds gaining the best-in-class functionality of new applications and keeping the comfort of customized legacy systems.
Want to know more about cloud co-existence?
If your organization is determining whether cloud co-existence can make sense for your HCM strategy, Emtec can help. Contact us today.