Implement HR software: cloud or on-premises solution?

Implement HR software: cloud or on-premises solution?

However, the market for suitable HR software is becoming increasingly confusing, because there are not only solutions from large corporations, but now also solutions from smaller companies. Now you have to get an overview and choose the right software based on data and facts. The first question is: Cloud or on-premises solution?

Why an HR Cloud solution?

SaaS systems are now primarily mapped via a cloud solution. The reasons for this are more diverse than ever. Some want to replace table-based software or implement new functions, while other companies are happy about the modern environment, which can also be used on mobile devices.

The main difference between an HR cloud or an on-premises solution is that the established manufacturers primarily rely on the cloud, because it makes it much easier to integrate new functions. It is therefore no secret that many functionalities are reserved for the cloud.

The main reason is also that updates no longer have to be delivered specifically to one customer, but the updates can be delivered to all customers at the same time in a simple and uncomplicated manner. Errors can also be eliminated more easily and without maintenance costs.

This also means that HR and IT are growing together, which has not been the norm up to now. However, this creates completely new possibilities and also simplifies the optimization and monitoring of processes in operation. Digitization in the company thus progresses easily and without complications.

Cloud or on-premises solution?

In order for a fair judgment to be reached, it is important that each point is compared with one another. But one thing is certain: if you don’t switch to a modern solution, you will suffer direct competitive disadvantages within digitization.

cost factor

Above all, IT is confronted with a low budget, because resources have to be saved and the individual services have to become cheaper. It is only with the cloud that savings can actually be made, because the data centers are no longer in the company, but with the manufacturer of the software. The maintenance costs and electricity costs are high in this regard anyway, because appropriate precautions must be taken against hacker attacks.


The security factor has just been mentioned, but this is a broad area. Cloud providers must not allow themselves a hack, as this directly damages the company’s image and can result in high claims for damages. It will therefore also again and again hacker Competitions held so that gaps that are still open can be eliminated. The providers maintain a high standard. A single service provider in its own data center cannot guarantee this.


It is also the scalability that makes the cloud solution stand out. No other software solution is easier to scale. The effort for this is also very manageable, because the technology is not taken over by the company. All it takes is an account upgrade, which takes just a few seconds. The expansion can also take place internationally and the most important thing is that there are no limits. With an in-house solution, the expansion is very expensive due to the hardware purchase alone.

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