HRM Solutions: Traditional HR Models

Clash With Next-Generation

Processes And Technology
by Paul D. Hamerman and Claire Schooley
for Business Process Professionals

Making Leaders Successful Every Day

For Business Process Professionals

HRM Solutions: Traditional Models Clash With NextGeneration Processes And Technology
by Paul D. Hamerman and Claire Schooley
with Connie Moore and Ralph Vitti

Ex ec u t i v e S ummary
Human resource management (HRM) applications consisting of six categories of solutions ranging
from core transactions to strategic talent management represent a market in transition. In this $8.7
billion software market, talent management stands out as the fastest-growing solution segment, and SaaS
revenues are increasing rapidly as on-premises licenses stagnate. The diverse array of HRM processes
challenges enterprises to find a one-stop shop for HRM applications, even with the breadth of solutions
offered by market leaders SAP and Oracle. Yet blending multiple HRM solutions presents architectural
and integration challenges that affect the cost of ownership. Business process professionals should
innovate their HRM processes and applications strategies by considering the architectural tradeoffs
between comprehensive packages and best-of-breed specialists, while leveraging the appropriate
deployment model choices combining SaaS, outsourcing, and on-premises methods.
2 l e of Co ntents
tab
Six Major HR Components Define The HRM
3 Market
Economic And Technology Trends Drive
4 Change In HRM Processes
Vendor Consolidation Delivers Breadth And
5 Viability
10 SaaS Fuels HRM Solutions Market Growth
The Battle Between Comprehensive And Point
Solutions Continues To Rage
11

recommendations

Process, Information, And Deployment

Models Drive HRM Apps Architectures
12

WHAT IT MEANS

Competitive Companies Will Innovate To

12 Empower Their Workforces
Supplemental Material

N OT E S & RE SOU RCE S

Forrester interviewed 20 vendor companies,
including ADP, Ceridian, CERTPOINT,
Cornerstone OnDemand, GeoLearning, Kenexa,
Kronos, Lawson, Learn.com, NorthgateArinso,
Oracle, Plateau Systems, Peopleclick Authoria,
Saba, SAP, SuccessFactors, SumTotal Systems,
Taleo, Ultimate Software, and Workday. In
addition, we spoke with more than 100 user
companies in 2010 via Forresters client inquiry
process.

Related Research Documents

The Four Pillars Of Talent Management
April 26, 2010
TechRadar For Business Process Professionals:
Human Resource Management Apps, Q1 2010
January 6, 2010
Building Your HRM Applications Strategy
December 19, 2008

2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,
and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To
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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

SIX major hr components define the HRM market

Organizations continually invest in business processes that are essential to maintaining their
workforce, particularly in areas that allow workers to work productively to drive the business
forward. For the purposes of this report, we categorize the breadth of HRM processes into six
primary categories:

HR management systems (HRMS) are the backbone for records and compliance. HRMS

includes payroll, personnel management, benefits administration, position management, basic

compensation, and compliance. This is the system of record for managing employee records
and transactions as well as records of other affiliated individuals, such as contractors, temporary
workers, volunteers, interns, etc.

Workforce management (WFM) processes focus on activities of the hourly workers. These

activities include time and attendance, forecasting and scheduling, and absence management.
These tactical activities allow companies to pay workers according to time worked and also meet
governmental compliance and labor contract obligations.

Talent management processes drive performance and planning. Talent management

processes include performance management using goal setting and metrics-based appraisals,
succession planning, multi-rater appraisals, competency management, and career planning.
With talent management processes, employees have specific goals to meet and know the
opportunities and career choices available to them in the company.

Learning management systems (LMS) enable employee development. These processes

enroll, track, and report on live and on-demand learning sessions. This information links to the
learners individual learning plan, which specifies on- and offline courses, modules, or other
learning activities; the time frame; and the percentage of activities completed.

Recruitment systems automate the acquisition and onboarding of talent. These include

applicant tracking systems that move the candidate through the application process, and once
the candidate is hired, provide an onboarding process enabling employees to become part of the
culture and reach full productivity faster.

Compensation and benefits build loyalty and retention around rewards programs. As

more companies adopt a philosophy of pay-for-performance throughout the workforce, more

sophisticated processes are required to align goals and rewards programs. Additionally, benefits
processes enable companies to enhance retention via health and welfare, retirement, and
other programs.

The first two categories, for the most part, represent the transactional backbone of HR systems
managing employee records and executing payroll and compliance. The last four categories represent
what Forrester refers to as the four pillars of talent management (see Figure 1).1 All of these processes
can be automated using point solutions or enterprise suites that reside on premises or in the cloud.
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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

Figure 1 HRM Solutions Footprint

Human resource management
HRMS

Workforce
management

Payroll
Time and
attendance
Employee
records
Absence
management
Salary
administration Workforce
scheduling
Compliance
Jobs and
positions
Shared services
Self-service

Talent
management
Performance
Succession
planning
Career planning
Goals
Organization
charting
Competency
management

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Learning
Course
management
Virtual
classroom
Mentoring
Learning
content
management

Recruiting
Applicant
tracking
Workforce
planning
Sourcing
Onboarding
Social
recruiting/
networking

Compensation
and benefits
Pay-forperformance
Stock-based
and deferred
compensation
Incentive
compensation
Market
comparisons
Benefits
administration
Enrollment and
communications

Source: Forrester Research, Inc.

Economic and technology TRends DRive Change In HRM Processes

Business, societal, and technology trends dominate the landscape and influence the management of
human capital, especially in todays changing economic environment. Specifically:

Businesses strive to integrate the components of the employee life cycle. Technology for

recruiting, learning, performance, and compensation and a single HRMS as the central system
of record will give managers a single view of employees and will become more seamless to
employees. Because of economic constraints, companies will emphasize internal recruiting,
going outside only when in-house skills dont exist or the company needs a change in direction
or approach. Employee learning programs will tightly integrate with company goals, keeping
employees skills sharp and helping them gain new knowledge for potential advancement.
Performance will determine learning activities coupled with succession and career development,
and success will be rewarded through pay-for-performance.

Companies will continue to face the challenge of managing a changing workforce. Although
Baby Boomers have not retired in predicted numbers (because of the economic slowdown),
these older workers still seek options that will allow them to work in less demanding positions
or to work fewer hours or on a staggered schedule. Mentoring will grow as a way for seasoned
employees to communicate knowledge to the new, and often younger, worker.2 Work/life
balance will be more important for all employees as they seek more customized work that fits
their needs and allows them to be more productive.3

2010, Forrester Research, Inc. Reproduction Prohibited

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

The unstable economy will continue to influence HR retention practices. Employee retention
efforts will include carefully crafted onboarding programs to acculturate employees and help
them reach full productivity quickly. A choice of career paths, appropriate learning, and
on-the-job training will help engage employees. Employees will continue to work hard, but
collaboration, social media tools, and flexibility in work locations and work hours will help
them manage the workload. With an economic turnaround, executives fear employee loss. But
with good retention practices, business will experience greater employee loyalty.

Companies will embrace social media throughout the organization. Technology enables

employees to get work done faster and more effectively from multiple locations. Employees will
need anytime access to productivity tools to complete sales, find information, take employee
training, locate the expert, and so on, no matter where they work or what device mobile or
connected they use.4

Mobile technology will reinvent the notion of employee self-service. Increasingly, users

access information they need on the spot through smart devices, collaboration tools, or social
media. For example, before a product discussion with a customer, a sales professional may
access learning content about the five most important selling points of the product or watch
a video to review a procedure they are about to perform. In addition to learning, additional
mobile process opportunities are emerging in areas from time reporting to talent management,
increasing process effectiveness and employer-to-employee service.

SaaS will become the deployment model of choice for HRM solutions. SaaS adoption will

continue to increase across all six categories of HRM applications. HRM vendors in areas such
as LMS and compensation have seen their ratio of licenses to subscription deals reverse in the
past two years, from 80% license to 80% SaaS. Pure-play SaaS vendors, including SuccessFactors,
Ultimate Software, and Workday, are seeing the highest levels of growth. IT will continue
to show greater confidence in SaaS across the HRM applications due in large part to the
elimination of upgrade headaches.

Vendor Consolidation delivers Breadth And Viability

The four HRM pillars of talent management recruiting, performance, compensation, and
learning provide a useful lens to predict how vendors will make acquisitions or develop
functionality. Large vendors believe that HR business process professionals want an integrated
approach from one vendor rather than continuing with a number of point solutions. Big outsourcers
are also getting into the act. In addition to acquisitions (e.g., ADP acquires Workscape), outsourcers
and system integrators (e.g., ADP, Ceridian, Infosys, NorthgateArinso) are becoming a significant
reseller channel for HRMS and WFM solutions on a hosted, subscription (i.e., SaaS) basis.
Acquisitions remain a constant force market, as evidenced by the following recent deals:

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
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SuccessFactors acquires Inform and Cube Tree. Inform adds workforce analytics and

strategic workforce planning to the portfolio and advances SuccessFactors strategy toward its
new mantra of business execution. Cube Tree provides social business software that integrates
communication, content sharing, and collaboration into one platform.

Authoria and Peopleclick combine for breadth across recruiting and talent. Authoria provides
a talent management application, and Peopleclick is known primarily for recruiting. Both are
mature companies, and by joining forces, they increase their viability and scale in HRM.

ADP acquires Workscape to enhance total rewards. Workscape is known for its benefits and
compensation offerings for enterprise customers. This acquisition complements ADPs strong
payroll and benefits outsourcing business, as well as extending capabilities of its core HRMS
offerings.

StepStone Solutions acquires MrTed to gain a leg up in global recruiting. This acquisition

allows StepStone Solutions to increase its share of the talent acquisition market by leveraging
MrTeds enterprise capabilities for multinational companies.

Taleo acquires Learn.com as its fourth pillar. Following the acquisition of Worldwide

Compensation and the development and launch of a successful performance management

application, Taleo announced its intent to acquire privately held Learn.com on September 1, 2010.

Kenexa elevates compensation capabilities with Salary.com. Kenexa also adds the fourth

pillar of talent management with its acquisition of financially distressed Salary.com, announced
on the same day as rival Taleos acquisition of Learn.com. The acquisition of Salary.coms
compensation tools and content complements Kenexas recruiting and assessment, performance,
and learning capabilities.

SaaS fuels HRM Solutions Market Growth

The market for HR/HCM applications currently reaches $8.7 billion (2010 forecast) in product
revenues (i.e., licenses, maintenance, and subscriptions). Forrester expects this market to grow at a
composite rate of 8.3% through 2014, hitting almost $12 billion (see Figure 2). Subscription revenue
is growing at 15%, in contrast to software licenses, which will decline by 1.5% over the period.
Software maintenance, the lifeblood of on-premises enterprise apps vendors, will grow by 6% during
the period as a result of scheduled price increases and license add-ons, offsetting some customer
attrition to SaaS HRM solutions. The breakdown of this market into the key segments yields more
insight into growth patterns and market trends (see Figure 3 and see Figure 4 and see Figure 5):

2010, Forrester Research, Inc. Reproduction Prohibited

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

The HRMS segment is mature and remains tied to ERP. HRMS accounts for the largest

segment of the overall HR/HCM market at $4.3 billion, growing at 8.2%. This segment
encompasses 49% of the overall HRM applications market, with ERP vendors Oracle and
SAP holding large shares. Licensed on-premises software remains the dominant deployment
model in production, but SaaS is in the mainstream at 18% of the segment revenues. Smaller,
independent SaaS vendors (e.g., Ultimate Software and Workday) are gaining share, but
most multinationals remain on the ERP HRMS solutions due to the extensive language and
localization support (including payroll) in these on-premises packages.

Workforce management rests on time and attendance. The WFM segment currently hits

$1.5 billion with a 5.4% annual growth rate, accounting for 17% of HRM. Kronos is the leading
software provider in this segment, with its dominance in time and attendance. Workforce
scheduling, however, is a highly fragmented subsegment, with many vendors offering industryspecific solutions for optimizing the workforce. Absence management also makes up a portion
of this category. On-premises deployment of WFM has been the traditional model, but hosted
and SaaS deployments now account for 38% of the revenues.

Talent management sees explosive growth. Talent management is clearly the hottest segment
of the HRM market, with current-year revenues of almost $640 million (7% of HRM) and an
annual growth rate of 16.5%. The segment is seeing strong activity now as more companies
adopt metrics-based performance measurement processes, succession planning, and career
management. Talent management solutions are predominantly deployed via a SaaS model
(58%), often via best-of-breed vendors to supplement the core HRMS.

Learning management has made the transition from on-premise solutions to SaaS. LMS

currently has $483 million in product revenues (6% of HRM) with a growth rate of 7.9%. The
SaaS model currently accounts for 46% of product revenues in LMS, and leading vendors
indicate that new deals coming in are heavily weighted to SaaS. Streaming media and mobile
technology may add velocity to this segment in the next few years.

Recruitment is recovering following the economic downturn. Recruitment applications

represent nearly $1 billion in product revenues (11% of HCM) with an annual growth rate of
8%. Recruitment solutions are overwhelmingly delivered via the SaaS model, with subscriptions
accounting for approximately 86% of the markets revenues. This market segment has seen a
significant vendor consolidation during the past two years, and it has also weathered the effects
of the downturn, as hiring ground to a halt in 2009.

Compensation and benefits closely align with core HRMS systems. Compensation and

benefits solutions account for $835 million in product revenues (10% of HRM), with an annual
growth rate of 7%. This solution segment is closely aligned with and often part of the
core HRMS solution, but many companies choose best-of-breed functionality in pay-forperformance programs, incentive compensation, market pricing, and benefits enrollment.

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
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Figure 2 Forecast: Global HRM Market Growth, 2009 To 2014

$12,000
$10,000

Maintenance

$8,000
License

$6,000
$4,000

Subscriptions
$2,000
($US millions)

$0
2009

2010

2011

2012

2013

2014

CAGR

Subscriptions

$2,859.48

$3,213.03

$3,711.05

$4,286.26

$4,950.63

$5,747.69

15.0%

License

$1,714.04

$1,821.08

$1,832.01

$1,777.05

$1,688.20

$1,586.90

-1.5%

Maintenance

$3,459.86

$3,753.31

$3,989.77

$4,229.15

$4,415.23

$4,627.17

6.0%

Total $8,033.37

$8,787.42

$9,532.82 $10,292.46 $11,054.06 $11,961.75

8.3%

Source: company reports, vendor surveys, Hoovers, and Forrester estimates

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2010, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

September 24, 2010

HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

Figure 3 Forecast: Global HRM Market Growth By Product Category, 2009 To 2014
$6,000

HRMS

$5,000

$4,000

$3,000
Workforce management
$2,000
Recruiting
Talent management

$1,000

Compensation
and benefits
Learning management
systems

$0
2009

2010

2011

HRMS

$3,979.77

$4,348.32

$4,739.67

$5,118.84

$5,477.16

$5,915.33

8.2%

Workforce
management

$1,371.08

$1,497.52

$1,572.40

$1,635.30

$1,717.06

$1,785.74

5.4%

Talent
management

$555.50

$636.85

$738.74

$864.33

$993.98

$1,192.78

16.5%

Learning
management
systems

$440.67

$482.76

$526.21

$563.04

$602.45

$644.62

7.9%

Recruiting

$905.66

$986.65

$1,055.72

$1,150.73

$1,231.28

$1,329.79

8.0%

Compensation
and benefits

$781.69

$835.32

$902.14

$965.29

$1,032.86

$1,094.83

7.0%

Total $8,034.37 $8,787.42 $9,534.88 $10,297.53 $11,054.80 $11,963.10

8.3%

($US millions)

2012

2013

2014

CAGR

Source: company reports, vendor surveys, Hoovers, and Forrester estimates

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September 24, 2010

Source: Forrester Research, Inc.

2010, Forrester Research, Inc. Reproduction Prohibited

HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

Figure 4 HRM Segment Analysis

4-1 Segmentation by product category

Talent management
(TM)
7%

4-2 Growth rate by product category

Learning management
systems (LMS)
6%

Talent management (TM)

Compensation and
benefits
10%
HRMS
49%

Recruiting
11%

16.5%

HRMS

8.2%

Recruiting

8.0%

Learning management
systems (LMS)

7.9%

Compensation and benefits

Workforce management
(WFM)

Workforce
management (WFM)
17%

Overall

7.0%
5.4%
8.3%

Source: Company reports, vendor surveys, Hoovers, and Forrester estimates

Source: Forrester Research, Inc.

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Figure 5 Subscriptions As A Percentage Of Product Revenues

Recruiting

83%

Talent management (TM)

58%

Compensation and benefits

52%

Learning management systems (LMS)

45%

Workforce management (WFM)

HRMS
Overall

38%
18%
37%

Source: Company reports, vendor surveys, Hoovers, and Forrester estimates

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2010, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

September 24, 2010

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

The Battle Between Comprehensive and Point Solutions Continues to Rage

In speaking with dozens of Forrester clients regarding HRM applications strategies and vendor
choices, we find that the predominant application architecture consists of a number of best-of-breed
solutions arrayed around a core HRMS solution, either on-premises or hosted. The most common
business process areas served by the non-core point solutions include time and attendance, learning
management, talent management, and recruitment. Core HRMS vendors continue to invest in these
solution areas via internal development, particularly in talent management, and report improving
results in attach rates (percentage of customers adding the non-core solutions).
The momentum of best-of-breed vendors in HRM, and the increasing acceptance of SaaS as a
deployment model, means that core solution vendors will be unlikely to make significant inroads
in the point solutions space. In fact, talent management vendors, including SuccessFactors and
Softscape (acquired by Sumtotal Systems on September 20, 2010), are adding core employee record
functionality to their solutions. Even as historically specialized vendors broaden their portfolios,
most customers will retain a portfolio of HRM solutions to optimize processes, trading off core
system integration.
Best-of-breed point solutions persist for good reason the security of deploying recruitment
outside the firewall, since it is externally facing, is one example. The architectural complexity of LMS
for content and multimedia, which is difficult for HRMS vendors to master, is another. Clear market
leadership has been established in several areas, and innovative players are also worth watching (see
Figure 6). While Figure 6 indicates primary leadership areas, some vendors have strength in other
segments, as well.
Figure 6 Leaders And Innovative Players By Segment
HRMS

WFM

Learning

Talent
management

Recruiting

Compensation
and benefits

Leaders (listed ADP

alphabetically) Lawson
Oracle
SAP
Ultimate
Software
Workday

ADP
CyberShift
Infor
Kronos
Oracle

Cornerstone
OnDemand
GeoLearning
Plateau
Systems
Saba
SumTotal
Systems

Halogen
SuccessFactors
Softscape
Taleo

Kenexa
Peopleclick
Authoria
StepStone
Taleo

ADP
Benefitfocus
Callidus
Mercer
Salary.com
Synygy

Innovative
players to
watch (listed
alphabetically)

Aruspex
Dayforce

CERTPOINT
Learn.com

Lawson
SilkRoad
Sonar6

Jobs2Web
SelectMinds

bswift
Varicent

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September 24, 2010

Source: Forrester Research, Inc.

2010, Forrester Research, Inc. Reproduction Prohibited

HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

R ec o mmendat i o ns

Process, Information, And Deployment Models Drive HRM Apps

Architectures
As a business process professional, educate yourself in the human processes essential for business
success and help your company decide the best approach to HCM by:

Examining the six solution categories and prioritizing the importance to your
organization. Address the most critical need first, i.e., performance or succession, but
examine the vendors offerings in other HRM categories. Save money and effort and have
a better user experience by standardizing on an application that addresses more than one
strategic or core category.

Making talent and learning processes drive solution choices. Core components are
becoming commoditized, whereas the strategic offerings in talent and learning still have
significant differences in their applications. Examine each offering carefully to determine
which application best fits your business processes and company culture.

Having a clear plan for managing employee master data. Since a one-stop shop for HRM
solutions is an elusive goal, and because employee data is used pervasively throughout the
enterprise, a master data strategy for employee data is essential. Define process integration
scenarios around the core system of record and use standards-based integration technology
(SOA) to optimize timely integration.5

Selecting a deployment model that provides cost of ownership transparency. In most

cases, this will be SaaS, but consider other models as well, including fully managed cloud
deployments.6 Reassess IT policies that require employee data to be locked down inside the
company firewall.

Embracing mobile and social technologies to build loyalty and innovate processes.
Especially with the tech-savvy new workers and the consumer popularity of mobile and
social networking, these tools will let users communicate more easily inside and outside the
organization, as well as allow them to find the information they want when they need it.

2010, Forrester Research, Inc. Reproduction Prohibited

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12

HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
For Business Process Professionals

W H AT I T M E A N S

Competitive Companies Will Innovate to Empower Their Workforces

The workforce is changing, the way employees work is changing, and the way we do business is
changing. Look for these process or workforce changes in the next year to 18 months.

Workforce stability will depend on growth, development, and compensation offerings.

Companies face increasing retention issues as the job market recovers the result of lean
staffing, delayed replacements, and employee fatigue. As the job market evolves, innovation
of performance, learning, and rewards programs will ensure that loyalty and employee
satisfaction is retained or restored. Business process pros can expect a significant focus on HR
processes as the economy recovers.

Social networking will become a key resource for collaboration. The continued emphasis on
the speed of doing work will require the broader use of tools for immediate response.
Companies will address security, privacy, and business issues by establishing policies in these
areas. Business process pros can expect social networking to become a core part of HR processes.

Leaders will empower employees to innovate. Rather than give detailed orders, leaders
will state performance expectations for the organization and expect employee creativity
(within reason) and hard work to meet these expectations. Leaders will put high value on
resourcefulness, imagination, and alternative ideas that result in outcomes that give the
company an edge on competition. Business process pros should expect a significant focus
on and investment in talent management processes and innovation within the business.

Supplemental MATERIAL
Companies Interviewed For This Document
ADP

Oracle

Ceridian

Peopleclick Authoria

CERTPOINT

Plateau Systems

Cornerstone OnDemand

Saba

GeoLearning

SAP

Kenexa

SuccessFactors

Kronos

SumTotal Systems

Lawson

Taleo

Learn.com

Ultimate Software

NorthgateArinso

Workday

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HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology
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Endnotes
1

Companies are more aware today of the importance of managing talent with the assistance of technology
and the criticality of having a complete integrated solution that includes recruiting, talent management,
succession planning, learning, and variable compensation. See the April 26, 2010, The Four Pillars Of
Talent Management report.

Today mentoring is experiencing a resurgence because business leaders not only recognize the benefits of
transferring knowledge among employees they also have access to mentoring technology that fosters
and manages large numbers of mentoring relationships. See the August 6, 2010, Drive Employee Talent
Development Through Business Mentoring Programs report.

For many years, busy workers have struggled to find work/life balance, that elusive state of harmony
between professional obligations and personal needs which, we are told, will promote both better
performance at work and a happier life at home. See the March 20, 2009, Embracing Chaos Is Smarter
Than Seeking An Elusive Work/Life Balance report.

Sixty-five percent of firms have adopted at least one Web 2.0 technology, but businesses are focusing on a
subset of tools: wikis, discussion forums, and blogs. See the April 28, 2010, Business Web 2.0 Buyer Profile:
2010 report.

A variety of tools for enterprise data integration are available, though none are purpose-built for HR data.
For a definition of these tools, see the February 4, 2010, Forrester TechRadar: Enterprise Data Integration,
Q1 2010 report.

Hyped by applications vendors, cloud computing is often confused with SaaS. SaaS is a subset of the broader
cloud computing realm, which includes platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS).
For a discussion of evolving deployment models and cost of ownership implications, see the July 23, 2010,
Packaged Apps In The Cloud: Cost Of Ownership Models Evolve Toward The Transparency Of SaaS report.

2010, Forrester Research, Inc. Reproduction Prohibited

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13

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