Since purchasing SuccessFactors, SAP has designated Software-as-a-Service as its default mode of delivering HR applications.
The enterprise applications vendor has already moved its talent management software into maintenance mode, although it still plans to support the modules until 2020. It also intends to provide customers with selective enhancements over that period.
As for its core on premise HCM packages, SAP likewise aims to stop selling them beyond certain geographies such as China and Brazil and heavily-regulated industries such as life sciences, energy and nuclear, which prefer to keep their software on site.
Jeff Kristick, SuccessFactors’ vice president of product marketing, said: “SAP now sees its area of innovation as the cloud.”
But the acquisition also plans to adapt the payroll, benefits and time and attendance functionality found in SAP’s on premise HCM software to “accelerate the roadmap” for its own core HR Employee Central offering, he added.
A further aim is to integrate the two vendors’ offerings to ensure that existing SAP on premise software users can purchase SaaS-based services not currently found in its offering such as recruitment.
SAP’s cloud team will also be merged with SuccessFactors’ existing 1,500 staff under chief executive, Lars Dalgaard, but there will be no layoffs. SAP intends to unveil its broader cloud strategy next month.
