SAP SuccessFactors - Introduction

SuccessFactors is a SAP product suite to provide cloud based solution to manage business alignment, people performance, recruitment, and employee central and learning activities for all sizes of organizations in more than 60 industries. SAP SuccessFactors is a cloud based HCM solution and developed on Software as a Service (SaaS) model.

SuccessFactors is the name of a company founded in 2001 that developed cloud-based HCM solution known as SuccessFactors and was acquired by SAP in 2011.

Key Features of SAP SuccessFactors

Following are the key features that are covered in SAP SuccessFactors cloud-based HCM solution provided to the users −

  • Recruitment
  • HR Transactions
  • Changes and Transfers
  • Position Management
  • Time Off
  • Payroll Time Sheets
  • Reporting, Compliance and Auditing
  • Integration & Extensibility
  • Learning and development

Software as a Service

SAP SuccessFactors is cloud based HCM solution and is designed on Software as a Service (SaaS) cloud model. Software as a Service is also known as On-demand software solution where software is licensed on a subscription basis and is centrally hosted.

SaaS has become a common delivery model for many business applications, including office and messaging software, payroll processing software, DBMS software, management software, CAD software, development software, gamification, virtualization, accounting, collaboration, customer relationship management (CRM), management information systems (MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), talent acquisition management and other software and infrastructure services.

  • In SaaS, software and application data is hosted on a remote cloud and can be accessed on demand from any location using secured login credentials.

  • SaaS software is multitenant that allows many instances of the software to be accessed and are on the same application version.

  • Users have an option to select features and functionality to use in the standard solution and in the regular releases that are introduced by the vendor.

  • SaaS Solution is based on multitenant architecture where a single configuration is applied for all the tenants or customers. To provide scalability, you install application on multiple machines.

The following screenshot shows the homepage of SAP SuccessFactors. At the top, you have a search option where you can perform any active search. In addition, you will find a To-Dos tab to quickly access daily tasks and a help & tutorial tab that you can use to seek any help related to SuccessFactors.


Benefits of Cloud Solutions

There are various benefits of using a Cloud environment as compared to an On-premise system.

On-premise Cloud Solutions

The major benefits of using Cloud environment are as follows −

Cost Effective

  • Capital Expenditure − Capital Expenditure is involved in IT infrastructure for on premise solution. Cost of IT infrastructure is very high. Example: Servers, interfaces, network devices, etc.

  • Operational Expenditure − In a Cloud solution, you do not need capital expenditure, so it saves huge money to procure hardware platform. In a Cloud environment, hardware is shared and procured by Cloud service provider and the company has to bear only operational costs like users and maintenance of tenant.


  • Company Owned − An on-premise solution is owned by a company.

  • Subscription − In cloud environment, you have to subscribe to a cloud vendor.