Cloud HR
Cloud HR is HR software hosted on the internet (the cloud) rather than on local servers, accessed via web browsers and requiring no on-premise installation.
technology
Category
beginner
Difficulty
4 min read
Read time
2025-01-15
Updated
Definition
Short definition
Cloud HR is HR software hosted on the internet (the cloud) rather than on local servers, accessed via web browsers and requiring no on-premise installation.
Detailed explanation
Cloud HR, also known as SaaS (Software as a Service) HR, delivers HR software via the internet. The software is hosted on the provider's servers, accessed through web browsers, and requires no local installation.
Cloud HR has become the standard for modern HR software due to its accessibility, automatic updates, lower upfront costs, and scalability. Users can access the system from anywhere with an internet connection.
The provider handles infrastructure, security, backups, and updates, allowing HR teams to focus on people rather than technology. Data is stored securely in the cloud with enterprise-grade protection.
Practical guidance
How it works
The HR software runs on the vendor's cloud infrastructure (typically AWS, Azure, or Google Cloud). Users access it via web browsers using internet connections. Data is stored in secure data centres with redundancy and backups. Updates are deployed by the vendor automatically.
Best practices
Verify data security and certifications
Understand data residency requirements
Review vendor track record and stability
Ensure adequate internet connectivity
Legal context
Legal basis
GDPR (data processing, security, location)
Jurisdiction: Global
Key provisions
Data processing agreement with cloud provider
Understanding of data location/residency
Appropriate security measures
Clear data ownership terms
Official source
Frequently asked questions
Is cloud HR secure?
Reputable cloud HR vendors invest heavily in security, often exceeding what most organisations can achieve on-premise. Look for certifications like ISO 27001, SOC 2, and GDPR compliance. Data encryption, access controls, and regular security audits are standard.
What happens if my internet goes down?
Cloud HR requires internet access. For brief outages, this is rarely problematic. Good vendors offer high uptime (99.9%+). Mobile data provides backup access. Some features may cache data for limited offline use.
Where is my data stored?
Data location varies by vendor. Ask about data residency and ensure it meets your requirements. UK/EU organisations often require data to be stored in UK/EU data centres. Reputable vendors provide clear information about data location.
Related glossary terms
HRIS
An HRIS (Human Resource Information System) is software that manages and automates HR processes including employee data, payroll, benefits, and reporting.
Single Sign-On
Single sign-on (SSO) is an authentication method that allows users to access multiple applications with one set of login credentials.
Data Protection
Data protection is the practice of safeguarding employee personal information from unauthorised access, use, disclosure, or loss.
API Integration
API integration is the technical connection between different software systems that allows them to share data and functionality automatically.