Cloud-based intelligent talent management solutions provider Saba Software has announced the opening of its first Australian datacentre.
The datacentre will host the company's own cloud solution, Saba Cloud, a product aimed to help human resources across sectors manage and engage employees.
The Sydney-based datacentre has been introduced to the market to address the need of enterprises in Australia, New Zealand, and Asia-Pacific, a region in which the company has seen a strong demand for its Saba Cloud product, according to Olivier Ghezi, Saba senior vice president and general manager.
"We're investing significantly in the region, as it makes up a fair share of the business. The gross market at Saba represents 31 percent of the business, which is 10 percent more than Europe, at 21 percent. Out of the 31 percent it's dispersed between Latin and APJ, APJ makes up a majority. Then there's 48 percent in North America," he said.
"But what's interesting to see is that now the shift has happened, and more than 50 percent of the business is outside of the US, which is good."
The introduction of a local datacentre also complies with new Australian data privacy regulations, which were introduced in March by the Australian government as part of the. It now requires foreign cloud providers to contractually undertake to comply with the legislation, and it prohibits the sending of personal information outside Australia.
With the changes in mind, Ghezi said that the Saba Cloud datacentre will mean that data from ANZ and APAC customers will reside in Australia. At the same time, he noted that having a regional Saba Cloud will offer customers the benefit of higher performance due to proximity of the datacentre to end users.
Olivier has said that the company is committed to offering a service-level agreement for 99.9 percent availability with the new datacentre.
As for whether the company will open more datacentres in Australia, Olivier said it's unlikely. "It's very expensive for a company like us; it's an enormous investment because you need to have a disaster recovery solution as well. It's not something we do everyday; we'll only do it when the market justifies it, and when there is a strong demand for it."
Despite the growth that Saba has experienced with the Australian market, a study by Navigo Research into HR systems adoption identified that nearly 55 percent of HR systems in Australia have been in use for longer than seven years.
The study also found that Australian companies have mainly adopted core HR systems from Australian vendors, however there are a "smattering" of companies using international vendors, such as SAP's HCM on-premise product and Oracle's PeopleSoft.
However, Michael Specht, Navigo Research, said that year-over-year the market share for SAP's HCM and Oracle's PeopleSoft is reducing, suggesting that companies are looking to adopt new technologies.