What is Happening?
At the SuccessConnect event in Las Vegas this week, Saugatuck was able to speak with more than a dozen customer attendees along with key executives from SuccessFactors and SAP, including SFSF co-founder and CTO Aaron Au, Chief Marketing Officer / SAP Cloud and Line of Business Tim Minahan, and Sven Denecken, Global VP Cloud Solutions and Co-Innovation at SAP.
Throughout all of our conversations, three key threads emerged regarding Cloud, HR solutions and strategy, and SAP itself as follows:
- Concerns: We found it fascinating that none of our customer conversations touched on Cloud concerns – including security. No mentions were made about data security and privacy in the Cloud. Instead, discussions tended to focus on the specific, tactical concerns relative to any new software deployments, namely integration, data migration, and time to completion. This is another powerful sign that the “Cloud experiment” truly is over.
- Strategy and Modularity: We found no one with an actual “Cloud strategy” in regards to their Cloud procurement approach. Instead, businesses are building on, enhancing and extending business processes and management with a variety of solutions. In our conversations there was no hint of a broad enterprise movement toward Cloud-based solutions exclusively. Consistent with the broader Cloud HCM segment, many customers are retaining existing systems in certain areas such Learning, Payroll, or Performance Management, while others are using the modularity to extend their on-premises core HR solutions with additional SuccessFactors Modules like Recruiting, Talent Management, and Workforce Analytics. All indications are that current SFSF customers are planning on embracing fully hybrid deployments in their HR systems, and that while complex integrations are far from being a solved problem, SFSF’s implementation partners and 3rd party integration vendors like Dell Boomi, and Informatica are able to make the complexity manageable.
- Maturity: Our conversations with customers here at SuccessConnect, and with enterprise IT and LOB leaders globally, continue to indicate that, while nowhere near its final form and capabilities, Cloud has matured enough that its perceived and real risks are equivalent to those of most other mainstream forms of IT. That means that Cloud can be acquired and managed as would most other forms of Business IT, even as it enables and catalyzes business transformations.
In short, we’re learning to manage Cloud as it should be – a key Business IT component and catalyst. Next, and soon, we must learn to manage business change, as our Business IT continues to transform. Continue reading