Essay Example on The Cloud Revolution: Competing with On-Premise Systems for Housing Employee Data

Section I

Over a long period, the processes and system which has been utilized for housing employee information are often found within the company. Starting from the implementation of the routine administrative functions, both staff from the human resource management and the IT usually play essential roles in ensuring that the company data are accurate and secure (Heilig et al., 2015). Fortunately, the culture of having an on-premise system has received stiff competition from the cloud-based system, which also plays a significant role in workforce management. Still, it provides more support and highly flexible for many organizations. Even though the cloud-based system is more cost-effective than the on-premise system, it also provides the opportunity for a company to monopolize the market (Heilig et al., 2015). Despite many companies willing and able to implement the cloud-based system without budget straining, the rapid setup of the system and a decreased maintenance option which they used for tracking attendance and time, administration benefits, payroll, and other important data is often the best choice unusual for the large organizations like Apple Inc (Heilig et al., 2015). It is because the on-premise can offer the peace regarding the security and safety of the organizational data, especially those that are more sensitive.

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Therefore, Apple Inc has focused on transforming its operation by moving from on-premise to the cloud-based system, in which the management has projected to be more cost-effective and would enhance organizational performance. Apple is an international company that designs, develops, and sells personal computers, software, electronics, smartphones, tablets, and accessories (Gupta & Prinzinger, 2013). Today, Apple is among the largest technology companies in the world and the best phone manufacturer. With the cloud-based system, Apple Inc is expected to monopolize the technology market with the frequent development of more sophisticated software that has enhanced the use of computers and mobile phones; thereby, surpassing rivals in the technology industry and improving organizational performance (Heilig et al., 2015). The paper seeks to analyze the technology decision being made by Apple Inc in its transition from the on-premise to the cloud-based system and its effect in the technology industry. The paper also aims to discuss the advantages and disadvantages that the company incurred due to the decision.

Cloud-Based Systems in the Technology Market and Industry

Regarding the impact of cloud-based systems for workforce management and operation in the technology market, the company has designed its strategy to focus on improving marketing and products, specifically taking advantage of the rapidly growing technology to design and offer innovative software such as the current macOS integrates iCloud for better user experience (Heilig et al., 2015). Apple Inc aims to strengthen the capacity of completion within the technology market. The company concentrates on introducing more innovative and increased product lines based on the aspects of product strategy. For instance, the company has often launched a new generation of products almost yearly by enhancing its performance and utilizing the rapidly advancing technology on the products to outsmart its rivals in the tablet, mobile phone, and personal computer market (Gupta & Prinzinger, 2013). Notably, consumers are willing to purchase the services and new technologies that enhance their life, especially the new software that is frequently advancing to meet user experience. For example, Apple’s products, like watches, have become the best products in the market (Gupta & Prinzinger, 2013).

The company has built an international brand in all the markets. The company has always concentrated on expanding its customer base, swaying new potential customers, and strengthening its relationship with loyal consumers, especially by launching new software and products and expanding its market. According to the company’s financial data, Apple has been making tremendous sales in China, which is the world’s largest smartphone market (Heilig et al., 2015). The company believes that a great number of prospective customers reflect on the company’s possible huge profit. Thus, the company launched macOS to increase its market base and to perpetually satisfy the consumers’ needs. Also, reducing the prices of products is among the best strategies to increase consumption in the technology industry (Gupta & Prinzinger, 2013). Therefore, it is true that the transition from the on-premise to the cloud-based system will enhance performance and reduce maintenance cost as the employees’ information is more secure and safe. With secure data, hackers are prevented from reaching sensitive information, and more innovative approaches are set to run the organizational operation (Heilig et al., 2015).

Similarly, the forces of competition have been moderate to Apple Inc. The company’s customers have been loyal because of the value and quality products. Although other technology companies can offer the same products to customers, including personal computers, tablets, watches, and smartphones, Apple Inc provides more unique services than competitors such as Dell, HP, Sony, Google, and Samsung (Gupta & Prinzinger, 2013). For instance, Apple’s PS3 allows users to surf websites, play games, and watch videos. And loyal customers are often willing to buy higher-quality designs at a lower price in the market. Therefore, the introduction of a cloud-based system has demonstrated an opportunity to take huge market shares and outsmart its rivals. Understandably, the company has the largest shares of the technology market and displays sustainable growth regarding its profits (Lal & Bharadwaj, 2016). Because it is among the leading technology company, Apple should always adopt a cloud-based system that offers new opportunities and innovative concepts to uphold its comparative advantages.

Cloud-Based System versus On-Premise

Compared to the on-premise system, the cloud-based process shows tremendous benefits to the company, specifically increasing the efficiency and productivity in the company. Therefore, decisions regarding the adoption of a cloud-based process will enhance efficiency and foster productivity for Apple Inc and exemplary performance in the technology market (Lal & Bharadwaj, 2016). Concerning the implementation and development processes, it consumes a lot of time to install them and configuring the on-premise system for the organization to start using the process, the management of a workforce is usually quick for the company that utilizes cloud-based concept. For the cloud-based account creation, data loading, and the system’s configuration do not consume much time, unlike the traditional solution.

Based on the upfront cost, the decision to implement is always based on how much a company would spend. From this perspective, the use of an on-premise system increases the organizational expenses, including the cost of installation and maintenance. It is because the company is not only purchasing the software and the hardware but also spending a huge amount on the installation and implementation of the system. Such costs may reflect significant losses to the organization in the long-run. On the other hand, when Apple Inc decide to use a cloud-based solution, there would be no upfront cost for employee management (Lal & Bharadwaj, 2016). The company only pays monthly fees, which is also affordable and covers training, cost of maintenance, and the system’s support.

In every organization, the operational cost is a fundamental factor because it accrues for a specific time, especially for the company that implements an on-premise solution. It will as capture on the cost of running the installed server onsite, which involves the maintenance, upgrade, backups, and the cost of replacement. Such costs are always expected to surpass the amount that the company had budgeted (Lal & Bharadwaj, 2016). Understandably, for Apple Inc that decides on the implementation of the cloud-based solution, the company is benefiting from employee management through shared services; thereby, significantly reducing the operational cost. Notably, reduced operational cost means a fundamental decrease in organizational expenses; hence, increasing the profit that reflects on improved organizational performance (Tsai et al., 2014). Therefore, such a technology decision is critical for the organizations that operate in a more competitive industry like Apple Inc.

Concerning the scalability and the organizational performance, the quantity and the demand of the company may increase over a given time. Therefore, modifying the traditional on-premise system to meet such demand may cost more to the organization or can even be impossible for certain organizations. For the cloud-based system, the scalability is provided because the process has a multi-tenant platform (Lal & Bharadwaj, 2016). Such a platform can maximize the scalability of the intensive data and increase the company’s investment in the employee management system.

Features of Cloud-Based Workforce Management System

Get Started Faster

Unlike the on-premise that takes a lot of time for implementation, a cloud-based workforce management system allows companies to commence employee management in the cloud in a shorter time. And because the system is web-based, combining the software with the operating system can decrease costs and time. Therefore, Apple Inc has often enjoyed a faster implementation process that enables the company to start managing the workforce in the cloud rapidly.

Connect Anywhere

The cloud-based system often hosted by the company; therefore, Apple Inc can manage its workforce anywhere because the software can be accessed anytime at any place. Thus, even if the management moves to a different location. The important thing is the computer, which is also a simple concern for the company to address because it is among the largest organization that manufacture the most sophisticated machines, including the MacBook.

Minimize the Ongoing Costs

The idea of moving away from the on-premise system to the cloud-based management software does not only save cash at the implementation phase. Apple Inc can as well money and time in the long-term. The developers can support all the maintenance regarding the system’s function, including the troubleshooting and the free upgrade of the software (Tsai et al., 2014). Apple Inc has also demonstrated the capability of faster customization of the software by adding modules through a single web-based interface.

Pay-As-You-Go

Also, the pricing model is a more attractive feature that comes with the cloud-based system. With the crucial decision to implement a cloud workforce management system, Apple Inc has reaped the benefit of only paying for the capability and structure utilized within the system, which is also determined by the number of users (Tsai et al., 2014). The model has helped the company save money and rapidly scaling to manage the increasing demand for changing the call center’s sizes.

Reduction of Upfront Costs

A cloud-based system helps in removing the significant investments compared to the traditional on-premise software. The decision to adopt a cloud-based solution for workforce management will enable the company to benefit immensely from ignoring the cost of purchasing the hardware, licensing the software, databases, and the cost of insta...