RealTime IT News

Employease Yearns to be Your Enabler

The software-as-a-service (SaaS) ecosystem just got bigger.

Employease, an on-demand provider of HR solutions, has released a new web services offering that allows companies to integrate various solutions onto a single platform.

It's own.

According to Jeff Beinke, vice president of product marketing, Employease Extend will allow companies to link data from their HR system to other enterprise systems, such as customer relationship management, financials, and security systems.

Thus, data from Employease benefits solutions can be exported in real time to a company's network security system, so that new hires could be given quick access -- or so that terminated employees can be locked out immediately.

"What we're creating is an employee information ecosystem," Beinke told internetnews.com.

That will enable Employease to make the jump from being a simple solutions provider to a veritable portal for a variety of Web services.

"This makes them money by putting them in an enablement position," noted Jeff Kaplan, CEO of THINKStrategies, a Boston-based consultancy.

Kaplan said Employease is taking its cue from AppExchange, an ecosystem launched by salesforce.com earlier this year.

"This shows how SaaS is moving from being product to platform-oriented," he said.

Merrill Lynch analyst Kash Rangan noted in a new report that this strategy could be a winning formula for on-demand players.

"Salesforce.com’s launch of AppExchange, and NetSuite’s more recent introduction of NetFlex, is significant," he wrote.

"It is a very compelling strategy," giving those companies "additional development resources and channel capacity."

According to Beinke, Employease can offer itself as a platform because its solution was originally designed as a service-oriented architecture.

And the company is uniquely positioned for this strategic shift, noted Kaplan agreed, because of the number of employee lives that it touches.

Although privately held, Beinke revealed that revenue at Employease grew by 55 percent from Q1 2005 to Q1 2006. The firm has more than 1,500 customers with more than 900,000 employees using its systems.