SaaS HR vendor lands global deal with Siemens

SuccessFactors' applications will be rolled out to 420,000 users worldwide

SuccessFactors, maker of SaaS (software as a service) applications for employee performance and talent management, announced Monday that it has landed a global agreement with Siemens, in another sign of the on-demand model's growing acceptance by enterprises.

The San Mateo, California, vendor's software will be rolled out to 420,000 users in 80 countries, and in 20 languages, according to SuccessFactors.

In a statement, Siemens said it went with the vendor in order to standardize on a single platform and separate "strategic execution and management" from its transactional HR systems. Siemens added that it is pursuing a cloud computing strategy in general, believing it can lower IT costs and speed up processes.

"Siemens is a traditional SAP house. For their team to make a big bet on SuccessFactors represents the new type of thinking present among many CIOs and enterprises today," Forrester Research analyst Ray Wang said in an e-mail.

"Their software vendors may not be innovating fast enough to keep up with the enterprise's requirements."

SuccessFactors declined to release the exact price tag on the deal, but said no single customer represents more than 5 percent of its revenue, which was US$35.2 million in the first quarter, a 50 percent increase over the year prior.

The vendor claims to have 2,700 customers and 4.7 million end-users.

While companies worldwide are reining in IT spending as the global recession persists, SuccessFactors occupies an opportune niche, said Paul Albright, chief marketing officer.

"CEOs and CFOs are looking to come out of the economic downturn much faster, with more focus and vigor," he said.

Therefore, companies are investing in software that helps set employee goals and gets top performers "in a position to have the biggest impact," he said.

But industry observers are predicting big growth for SaaS applications overall. The global SaaS market will reach $8 billion this year, up from $6.6 billion in 2008, and it will skyrocket to $16 billion by 2013, according to a recent Gartner report.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags SaaSHRsiemensSuccessFactors

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?