Datacom today announced that through an agreement with SAP it will offer SAP® enterprise applications via its cloud platforms. Datacom’s initial focus will be on “People Services,” through which it will deliver the SAP ERP Human Capital Management (SAP ERP HCM) application, including payroll.

By delivering SAP applications via its cloud platforms, Datacom can help customers avoid the up-front capital costs often associated with traditional methods of software deployment.

Organisations across Australia and New Zealand will be able to access a suite of back-office processes paid for on a pay-as-you-go basis with scale-up and scale-down capabilities, providing them with increased flexibility and the ability to control costs. Datacom will offer delivery of SAP solutions through two service options: Software as a Service (SaaS) or full business processing outsourcing.

Datacom is the largest provider of payroll services in New Zealand and successfully processes more than 180,000 payments each month in Australia. The additional cloud offering is expected to create a need for more service centres across the country, with the potential to generate new jobs.

“In the current economic climate, chief financial officers have been cautious about entering into large new capital commitments,” said Mark McWilliams, investment director, Datacom. “Through this new agreement, we can help organisations reduce their capital and up-front investments and achieve greater economies of scale by deploying SAP applications via Datacom’s cloud platforms. Our analysis shows that savings can be achieved upwards of 30 per cent.”

“We are very pleased to be working with Datacom as provider of cloud, hosting and outsourcing services for SAP solutions,” said Beth Ryan, general manager, Ecosystem and Channels, SAP Australia & New Zealand. “We know our clients have embraced the concept of cloud and consumption economics with open arms.  Through this agreement, we expect to give businesses more options in how they deploy enterprise applications.”

Expanding on its People Services, Datacom intends to offer a full suite of tools focused on the employee, delivered via a SaaS model.