Only a few years ago we wouldn’t have even had this conversation.  Even with Software as a Service becoming more popular over 10 years ago, the conventional wisdom at the time was that significant enterprise systems would always be housed in-house.

That conventional wisdom has changed.

Big IT vendors like Microsoft, Oracle and Amazon have pushed hard for organizations to shift to an online subscription model.  At one time the thinking was that this would be most attractive to small and medium sized businesses but that thinking has evolved too.

Here at HMS, we have had TimeControl on-premise available since 1994.  TimeControl Online, our Software as a subscription Service option came out in 2011.  We continue to support both on-premise and online clients and are committed to do so for the foreseeable future.  There are some clients who have very specific and very important reasons to keep their TimeControl systems in-house on their own data platform.  Often these are government or defense sector clients.

But let’s not think about the exceptions for a moment.  Let’s think about everyone else.

Imagine an organization that has heard the evangelism from Oracle and Microsoft and has decided to move some of its data systems to a subscription model.  Both Oracle and Microsoft are making it more and more awkward to choose and install an on-premise system so the incentive to shift might be high.

The savings to the organization is that they no longer need to have quite as much expertise in the IT department.  After all, at the subscription service center, security, monitoring, upgrades, system performance, database servers, operating system updates, network configuration, security patches and, of course, monitoring, updating the hardware servers themselves is handled as part of the subscription.

Now, with one or more systems successfully migrated, the need to handle these requirements internally evaporates as does the need to have that same level of IT expertise available in house.  Many of the IT personnel can be repurposed and there are the remaining in house systems to support but the numbers start to dwindle.

Who leaves first?

In many cases, there is natural attrition and the company is happy with that.  It’s better overall for morale if people are leaving of their own free will.  Older employees who are at retirement age or who can be given an incentive package to retire early take the plunge.  They are probably still young enough to continue in the IT industry if they wish working in other capacities.  But, those people who are leaving through retirement won’t be replaced or wont’ be replaced in the same numbers.

In some cases, some employees see the future coming and decide to seek other opportunities elsewhere.  In most cases, this will be the most experienced and capable employees.

For these two categories, the impact on the organization cannot be measured by just the number of employees.  A great deal of corporate memory, experience and skill go with these seasoned veterans.

We have had contacts at some of our clients announce to us they were retiring, then announce that they couldn’t leave quite yet.  Then announce they were retiring again.  Then announce that yes, they’d actually retired by had been retained by their old employer as a contractor so we’d be continuing to interact with them.  It’s not a unique story.

For the organization, the ability to continue to support the enterprise systems that remain becomes harder and harder and so it’s perhaps no surprise that in the last 2 years, we have had more on-premise TimeControl clients shift to the TimeControl Online subscription service than ever before.  We’ve made that easier in many respects by having an Evolve Program to help defray the costs of going online but the incentive is clearly coming from within.  And, this shift isn’t restricted to our small and medium clients.  It includes some of our largest clients as well.

We expect this migration to continue.

Our own commitment isn’t likely to change however until there are literally no clients left who wish to purchase or support TimeControl on-premise.  Until then we plan to support our clients both on premise and in the Cloud.

For more information on TimeControl Online, go to: Timecontrol.com/features/timecontrol-online.

To see more about choosing Online vs. On-premises, go to: TimeControl.com/how-to-buy.

To find out more about the Evolve program go to: The TimeControl Evolve Program. or contact one of our TimeControl experts at: Timecontrol.com/contact.