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Dinosaurs in SaaSWorld II

March 11, 2014

reptor warningAfter my day off in the Cosmos, I’m back, as promised, to write about the cloud, and who doesn’t love a sequel!  What triggered me was a post by Holger Mueller on Oracle’s progress in the cloud. Last week Holger reported similar advances by SAP. It seems the chatter by some that tech “dinosaurs” like Oracle and SAP weren’t going to be able to make the transition from on-premise software to Software as a Service (SaaS) were engaged in some wishful thinking. The “true SaaS” bias and raging competition evokes very emotional responses as illustrated in this LinkedIn conversation about Oracle winning a customer back to their Oracle Fusion HCM (cloud) solution from Workday. The thread reveals strong opinions from those on both sides of the issue (including analysts), and even includes a response from the CFO of the customer!

KronosInTheCloud-2It’s no surprise some of the the self described “SaaS bigots” doubted the ability of on-premise software vendors to make the transition. There’s a significant change to a company business model when moving from a “money up front” licensed software model to a “deferred revenue” SaaS model. Then there’s the software architecture itself, pricing, and Sales compensation models that needs change. All of those change management issues scream “DANGER” like a sign outside a raptor cage. Staying in the real world though, On-Premise to SaaS: Road Less Traveled is an excellent post describing many of the transition issues “the dinosaurs” face. Fortunately for Kronos, we saw the asteroid coming, and began moving Workforce Central customers to the cloud in 2006. Our momentum continues. We have over 500 customers in our Workforce Central cloud, and the pace of customers moving there is accelerating. Just in the past couple weeks, we’ve had 10 more customers (and nearly 135,000 employees) “go-live” across several industries, and scaling in size from 200 to 100,000 employees!

I bet you didn’t think a “dinosaur” could move so fast…

Customer Business Industry Employees Type Go-Live
Well products and services Manufacturing 1,000 Upgrade 02/24/14
Resort Hospitality 1,600 Upgrade 02/27/14
State Agency Public Sector 1,800 Upgrade 02/27/14
Aluminum components Manufacturing 2,800 New 02/27/14
Global Tax Services firm Services 200 New 03/01/14
Global animal health company Manufacturing 9,000 Upgrade 03/03/14
Community youth development Services 1,900 New 03/06/14
Hospital Healthcare 500 Upgrade 03/07/14
Hospital system Healthcare 100,000 New 03/09/14
Pharmaceuticals Manufacturing 16,000 New 03/10/14

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