SaaS/Cloud ERP- a case of When not If……….. and other young companies in the SaaS movement, including WorkDay, NetSuite, have been battling on two fronts:

  • To legitimise their technology and licencing business models
  • To compete with the traditional business models

Microsoft has delivered a Dynamics CRM that ticks the boxes and has announced plans for ERP. To date SAP and Oracle have their own luke-warm but costly internal SaaS development initiatives that have fallen well short of expectations.

But both Oracle and SAP have entered the market with recent acquisitions and are paying a fairly high price. Last week Oracle acquired Taleo following SAP’s acquisition of SuccessFactors late last year. Both acquisitions are in the HR modules based around ‘Talent Management and Workforce Planning”.

Key notes: one of the key negative spins on the Cloud/SaaS model has been that security is not what it should be. People and talent are the key resource of many companies. Looking at the customer lists of both SuccessFactors and Taleo convinces me that many companies no longer see security as an issue.

They have both acquired companies ran a SaaS model and both were making inroads into the ERP/HR domain of the incumbent vendors. Expect that the rolling stone to gather speed.

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