Software Development

HR software from the cloud: this is how it works

HR software from the cloud is in vogue. The use of cloud services is particularly attractive for medium-sized companies. After all, with the cloud service you buy customer service at the same time. The principle: The software used and all data are stored in an external data center , which the cloud operator is responsible for maintaining. But what is decisive when choosing the right offer? In this article you will learn everything you need to know.

What is a cloud and how does it work?

With cloud-based HR software , the entire IT infrastructure – storage space, computing power and application software – is provided as a service via the Internet. Users can access data and entire programs via a secure connection via their web browser. The cloud provider takes care of the maintenance and support of the underlying IT and software architecture . Fees are due for this.

The software used and the stored data are always available online and are therefore available to users regardless of time and place. This is particularly useful when traveling on business and when working from the home office. Cooperation across company locations can also be well organized in this way.

Status quo: Nothing works without the cloud

Concerns about hosting data in the cloud persisted for a long time. For longer than other areas, the HR scene in particular has shown restraint when it comes to using cloudbased HR software . The reason: In human resources management, the handling of particularly sensitive personal data dominates and for a long time there was great concern that this could be more easily spied on via cloud computing.

In the meantime, however, the acceptance of cloud applications has reached record levels in all areas of the company, as the digital association Bitkom and the auditing company KPMG found in the cloud monitor : 73 percent of all companies in Germany relied on computing power and services from the cloud in 2019. In the previous year it was 66 percent.

The trend continues to rise: At the latest since the Corona crisis in 2020, even more cloud doubters have been taught better. From one day to the next, many companies sent their employees to the home office. Those companies whose employees could continue to work seamlessly with their colleagues without having to be in the same office had a clear advantage here. They could access the same data via the cloud. That made smooth work a breeze.

In the course of the corona crisis, the need for high-performance cloud applications has therefore increased again sharply. Not only general cloud services such as Microsoft Azure and Amazon Web Services (AWS) are more in demand than ever – the importance of cloud-based HR software solutions also became clear. After all, personnel management had to continue undisturbed despite the crisis. The good news: HR software applications from the cloud are now available for the whole range of personnel matters. From A we active sourcing to Z like time recording.

Security in the cloud

What has also contributed to the increasing acceptance of software solutions for HR management from the cloud : The security precautions of the solution providers have increased immensely in recent years. Many cloud providers are now highly professional and have certified processes. Relevant in this context is a security certification according to ISO standard 27001.

It stands for information security at the highest level and confirms the constant improvement in IT security of the entire cloud infrastructure. Part of the certification process is the continuous review and improvement of an existing system. Once ISO 27001 is not always ISO 27001!

Also interesting for potential users: Does the solution provider have certification according to ISO standard 9001? This certifies the existence of a quality management system. The quality management standard describes the requirements, for example, when dealing with a company’s own employees and customers, in order to meet a certain quality standard as a service provider.

Data protection in the cloud

However, the ISO standard 27018 is also relevant for HR users. It regulates the handling of personal data in a cloud and certifies compliance with the principles of the European General Data Protection Regulation (GDPR).


Among other things, it contains the following requirements:

  • Personal data of the customer may only be processed according to his instructions.
  • The cloud provider must provide its customers with binding and conclusive information about the location of the data processing.
  • Cloud providers have to inform the customer about any processing of the data by third parties.
  • The customer must have access to his data at all times and he must be provided with options to change, delete or correct the data immediately.
  • Cloud providers may only release customer data to law enforcement authorities if there is a legal obligation to do so. In addition, in this case the customers must be informed about the release, unless the information is prohibited by law.
  • Should unauthorized persons gain access to the customer’s personal data, they must be informed immediately.
  • Binding rules about the return, transfer and destruction of the customer’s data must be established.
  • Contractual regulations for the procedure in the event of a data breach must be included.

Conclusion: software from the cloud – yes or no?

The bottom line is that HR software from the cloud offers a wide range of options for cost-effective and efficient access to a modern, contemporary and high-performance IT infrastructure and web applications. And that at any time and from any place. This not only guarantees efficient, custom-fit and trouble-free processes in daily HR work. The IT department is also relieved of administrative tasks. It’s a win-win situation for everyone involved.

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