Not since the appearance of Client/Server technology in the early 1990s has the Human Resource (HR) business community experienced such marketing hype surrounding a new technology as we have seen recently with Software-as-a-Service (SaaS). From an IT perspective SaaS is a distributed computing solution and from a business perspective it is a hosted application delivery solution. It is a revolutionary concept that has changed the enterprise perception about computing economics and created a new business model for the purchase and utilization of business applications.

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As the world sinks into a global recession all forms of business expenditure comes under close scrutiny, and the SaaS business model is a perfect way to reduce Information Technology (IT) costs and help steer companies through the recession period. Although recession-friendly SaaS still has two major barriers to overcome before there is universal adoption of the SaaS concept. They are security and integration. This article describes the SaaS model, identifies why security is a customer concern, and outlines the integration problems associated Human Capital Management (HCM) software applications.