{"id":11667,"date":"2019-08-19T16:51:59","date_gmt":"2019-08-19T06:51:59","guid":{"rendered":"https:\/\/roubler.com\/uk\/cloud-payroll-software-option\/"},"modified":"2021-04-12T08:58:21","modified_gmt":"2021-04-11T22:58:21","slug":"cloud-payroll-software-option","status":"publish","type":"post","link":"https:\/\/roubler.com\/uk\/resources\/blog\/cloud-payroll-software-option\/","title":{"rendered":"Why Cloud Payroll Software is the Most Cost-Effective Option for UK SMEs"},"content":{"rendered":"<p>It\u2019s not an understatement to say that purchasing a new <a href=\"https:\/\/roubler.com\/uk\/features\/payroll-software\/\">workforce management and payroll software system<\/a> is one of the most important decisions a business can make. People\u2019s livelihoods are dependent on receiving accurate pay, legislative compliance is at stake and it involves a large investment of money and time. The first decision to be made is whether to purchase a cloud-based SaaS or on-premise system. This post will look at the cost consideration of this decision.<\/p>\n<p>Cloud-based software is fast overtaking on-premise as the preferred vehicle for many businesses in the UK. <a href=\"https:\/\/ec.europa.eu\/eurostat\/statistics-explained\/index.php\/Cloud_computing_-_statistics_on_the_use_by_enterprises#Use_of_cloud_computing:_highlights\">Research published by Eurostat<\/a> reveals the UK is the sixth largest cloud user among other countries in the EU. According to a <a href=\"https:\/\/www.computing.co.uk\/ctg\/feature\/3062985\/cloud-the-picture-in-2018-and-beyond\">Cloud Computing report<\/a>, 88% of UK businesses were using cloud services in 2018 (an increase from 85% in 2017).\u00a0 A significant 45% of UK businesses using cloud computer services for accounting and financial (apps).<\/p>\n<p>The argument for cloud-based software is overwhelming with greater access to data, flexibility for your workforce, speed and instant updates.\u00a0 <a href=\"https:\/\/info.microsoft.com\/rs\/microsoftdemandcenter\/images\/driving-growth-together-small-businesses-and-cloud-infographic.pdf\">A Microsoft report<\/a> revealed that:<\/p>\n<ul>\n<li>94% of SMBs reported security benefits when using the cloud.<\/li>\n<li>59% of SMBs reported significant productivity benefits.<\/li>\n<li>82% of SMBs reported reduced costs, with 70% reinvesting their savings back into their business.<\/li>\n<\/ul>\n<p>But the biggest argument is undeniably cost. \u00a0Cloud adoption statistics reported in <a href=\"https:\/\/hostingtribunal.com\/blog\/cloud-adoption-statistics\/\">Hosting Tribunal\u2019s blog<\/a> reveal that 50% of enterprises spend more than $1.2 million on cloud services each year. <a href=\"http:\/\/datometry.com\/resources\/surveys\/cloud-data-warehousing-survey\/\">A survey of 166 IT leaders, reported in Datometry<\/a>, showed that main driver for moving their computing to the cloud was cost, with 61% stating that it was part of their companies\u2019 cost-cutting initiative.<\/p>\n<p>Let\u2019s look at why this is the case.<\/p>\n<p><strong>The cost of workforce management &amp; software subscriptions<\/strong><\/p>\n<p>To understand what we are comparing, let\u2019s look at the options:<\/p>\n<ul>\n<li>Using cloud-based workforce management and payroll software means that you pay a subscription fee. The software and data are hosted on the cloud and the cost of the hosting is included in your subscription.<\/li>\n<li>On-premise software. This means that you pay a licence fee for the software either up-front or annually. The software is installed on servers owned by your company and located on your premises. The cost of hosting and data storage is born by the licensee.<\/li>\n<\/ul>\n<p>Cloud-based software is sold as Software as a Service (SaaS) and is considered an operational expense in your budget. On-premise software, however, is purchased outright, as is the server you must host it on, and the office space where it\u2019s located. All are considered assets and are therefore capital expenses.<\/p>\n<p>For large enterprises who already have servers or their own private cloud, and an IT support team, and require customization, an on-premise system may be a more cost-effective option. But often the licence fees are significantly higher than that for cloud software, and the capital must be available to make the purchase in the first place.<\/p>\n<p>For small and medium businesses, a cloud-based workforce management and payroll system is by far a more cost-effective and inexpensive option. With payroll only systems starting at around \u00a33 per person (over 10 employees) and workforce management systems starting around \u00a36, it makes financial sense.<\/p>\n<p>The financial risks associated with cloud-based payroll and workforce management software are also far lower \u2013 generally, with SaaS subscriptions, you aren\u2019t locked in long term. If your business changes and you need a different option, cancellation is far easier. Once you\u2019ve purchased an on-premise system, you are up for high costs in replacing that system if it doesn\u2019t work for your business.<\/p>\n<p>The math is very interesting. We haven\u2019t gone into them here, but if you\u2019d like to look at the comparison of the \u2018hard dollar costs\u2019 in-depth on a general cloud versus on-premise system, <a href=\"https:\/\/www.linkedin.com\/pulse\/cloud-vs-on-premises-hard-dollar-costs-greg-deckler\/\" target=\"_blank\" rel=\"noopener noreferrer\">this article on LinkedIn<\/a> is certainly worth a read.<\/p>\n<p><strong>The cost of security<\/strong><\/p>\n<p>Cloud storage and SaaS is now quite mature, but organisations and their IT departments continue to weigh up the risks and benefits.<\/p>\n<p>For small and medium-sized businesses, the public cloud can offer better security and privacy than they would be able to afford if they chose on-premise. Cloud software providers hold the data on remote servers owned by Amazon Web Servers, Microsoft Azure or Google Cloud, backed up multiple times. Their business is dependent on security so customers can be assured they are doing everything in their power (and spending big) to protect the data under their care.<\/p>\n<p>Large enterprises with their own on-premise servers or even a private cloud pay a premium for security measures and need to pay for staff dedicated to monitoring security activity. An expense that few businesses in these economically uncertain times can afford.<\/p>\n<p><strong>The cost of updates and scaling up<\/strong><\/p>\n<p>When using cloud software, updates are generally carried out regularly and without additional cost to the customer. Updates can be rolled-out quickly with no \u2018downtime\u2019 required by the customer, meaning business \u2013 and revenue-generating activities \u2013 can continue uninterrupted.<\/p>\n<p>On-premise systems typically require down-time \u2013 and potential loss of revenue \u2013 for updates and maintenance, not to mention the staff required to carry out the work. It\u2019s an expensive exercise, particularly if the system has been customized.<\/p>\n<p>While cloud-based systems ensure customers are always on the latest version, a new version of an on-premise system requires a financial outlay for a new licence(s), the cost implementing the new version, the time to check data and training costs if the new version is vastly different to what was in place before.<\/p>\n<p>This is a particularly important financial consideration for <a href=\"https:\/\/roubler.com\/uk\/features\/payroll-software\/\">payroll software<\/a> where upgrades happen regularly as legislation regarding pay scales and entitlements changes.<\/p>\n<p>Cloud-based systems are also far easier to scale up or down as employee numbers change. It\u2019s often just the matter of clicking a button and adding a new \u2018seat\u2019. For an on-premise system, this means paying for an extra licence and installing the software on additional machines.<\/p>\n<p><strong>The cost of implementation<\/strong><\/p>\n<p>Cloud software is often so simple to implement that many providers allow customers to set themselves up. It takes very little time and often, IT doesn\u2019t even have to be involved. It\u2019s inexpensive from a time and resources perspective and ensures business as usual continues.<\/p>\n<p>On-premise systems typically require much longer implementation time, and businesses of any size need to consider whether they can afford to spare staff for a lengthy process.<\/p>\n<p>As cloud software and the security it offers becomes more sophisticated, it will be hard for any business regardless of size to ignore the cost savings that a cloud-based system offers.<\/p>\n<p>If you are searching for a new workforce management and payroll system, we recommend <a href=\"https:\/\/roubler.com\/uk\/resources\/white-papers\/selecting-hr-software\/\">downloading our comprehensive purchasing guide<\/a>.<\/p>\n<p>Words by Katrina Strathearn<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s not an understatement to say that purchasing a new workforce management and payroll software system is one &#8230;<\/p>\n","protected":false},"author":2,"featured_media":11668,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[882],"tags":[13,646,19],"class_list":["post-11667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-remuneration","tag-hr-software","tag-payroll-software","tag-workforce-management-software"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is Cloud Payroll Software the Most Cost Effective Option Roubler UK Blog<\/title>\n<meta name=\"description\" content=\"Purchasing a workforce management and payroll software is one of the most important decisions a business can make. But is it the most cost-effective option?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/roubler.com\/uk\/resources\/blog\/cloud-payroll-software-option\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Cloud Payroll Software the Most Cost Effective Option | Roubler UK Blog\" \/>\n<meta property=\"og:description\" content=\"Purchasing a workforce management and payroll software is one of the most important decisions a business can make. 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