The Top Four Reasons Why So Many Companies Are Selecting SaaS for the Most Efficient and Convenient Human Capital Management

1. Software-as-a-Service
The Top Four Reasons
Why So Many Companies Are Selecting SaaS for the
Most Efficient and Convenient Human Capital Management
WWW.ULTIMATESOFTWARE.COM

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3. Table of Contents
Introduction ....................................................................................................... 1
What Is Software-as-a-Service (SaaS)? ........................................................... 2
SaaS: How It Works .......................................................................................... 3
For Every Company, Large and Small .............................................................. 5
Benefits and Business Value for Entire Organization ....................................... 6
Sample Feature Sets of UltiPro through SaaS ................................................. 7
Top Benefits
In-House Control with Outsourced Convenience ...................................... 8
Return on Investment ................................................................................. 9
Best-in-Class Technology with Peace-of-Mind Security........................... 11
Award-Winning, Expert Service ................................................................ 13
Summary ......................................................................................................... 14
Ultimate Software Proprietary and Confidential ii

4. Introduction
A December 2008 survey by From payroll to benefits to more complex HR compliance, managing human resources
Gartner found that the nearly is a multi-faceted responsibility—and more and more crucial in the competition for
90% of organizations are hiring and retaining good employees.
planning to maintain or increase
their usage of SaaS solutions More than ever before, human resources professionals need to streamline HR
for the following reasons: functions and channel more energy into developing and retaining top talent. To stay
1) More cost-effective from competitive, they need superior systems and strategies already proven to positively
a TCO standpoint than impact business success.
on-premise solutions
2) Easier and/or faster to deploy Today, the most organized, efficient, strategic, and cost-effective approach to HR,
than on-premise solutions payroll, and talent management is Software-as-a-Service (SaaS), a means of delivering
3) Lack of IT resources a software solution online.
necessary to implement an
on-premise solution In addition to the competition for top talent, the contemporary workplace is changing.
Of the companies selected for Fortune magazine’s 100 Best Companies to Work For
Gartner Report 2009 list, 82 allow employees to telecommute or work at home at least 20% of the time,
User Survey Analysis: Software as a
a trend that is gaining steady momentum since 1998 when the list had only 18
Service, Enterprise Application
Markets, Worldwide, 2008 companies allowing employees to telecommute. Top talent will seek similar options
December 2008 when comparing and considering a workplace. The increased focus on results-based
work and the mobility of employees due to travel and remote work, plus the need to
provide the best tools for employee satisfaction, necessitate convenient, flexible
workforce management tools that can be accessed anytime and anywhere.
Gartner expects the SaaS Ultimate Software, a leading provider of HR, payroll, and talent management solutions
market to grow at average provides Web-based, on-demand SaaS for UltiPro—Ultimate’s human capital
annual rates of 19.4% through management (HCM) solution.
2013—far above the 5.2%
growth for the overall business As an industry leader in SaaS-delivered HCM, Ultimate Software explains in this paper
management software market. why more and more companies are choosing SaaS as the most advanced, yet easy
and highly efficient, approach to managing HR, payroll, and talent management.
Gartner.com
Market Trends: Software as a Service,
Worldwide, 2008-2013
May 2009
IDC states the percentage of
U.S. firms which plan to spend
at least 25% of their IT budgets
on SaaS applications will
increase from 23% in 2008 to
nearly 45% in 2010.
IDC Study
Economic Crisis Response: Worldwide
Software as a Service Forecast
Update
November 2008
Ultimate Software Proprietary and Confidential 1

5. What Is Software-as-a-Service?
“Coming from a service Software-as-a-Service is a method of providing comprehensive software applications
bureau environment, we through a secure Internet browser. Rather than buying and owning the software, which
believe that SaaS makes a lot requires up-front capital, in-house IT resources and maintenance, and often complex
of sense for us from a business training, a company uses the software for a subscription fee, while the applications and
standpoint. With SaaS, we can resulting data are stored and protected by a secure, remote host.
experience the control,
flexibility, and functionality of There are many different SaaS systems in use today that companies rely upon to drive
an in-house solution, without mission-critical functions, such as customer relationship management, customer
tapping into our internal ordering, accounting/finance, supply chain management and, the focus of this report,
resources for a new workforce HR systems, which includes, for example, employee data, payroll processing, benefits
management solution.” administration, recruiting, performance management, time and attendance, strategic
workforce analysis, and organizational planning.
Laurie Leblanc
Assistant Director of Compensation
According to Stamford, CT-based research firm Gartner Inc., the global SaaS market is
and Benefits
Harvard Business School expected to grow to $19.3 billion by 2011, tripling in size from the $6.3 billion it was in
Publishing 2006.
Ultimate Software developed its SaaS model to deliver the best in convenience,
affordability, and efficiency to customers. In 2008, more than 70% of Ultimate
Software’s new customers chose SaaS as the preferred method of using UltiPro to
manage HR and payroll.
Companies previously using traditional in-house methods or external service bureaus
for their HR functions cite a host of benefits in progressing to UltiPro via SaaS:
“UltiPro’s benefits-enrollment • Convenience and 24-7 Web-access from anywhere
feature set has shaved two to • Expert system maintenance, management, and upgrades without
three weeks off of our open dedicated in-house IT resources and complex training
enrollment process because • Greater functionality than licensed software or service bureau
there are no mailings to prepare • Greater responsiveness and control in managing employee data and
or massive amounts of data for processes
us to enter by hand. Conducting • Improved strategic planning and decision making
our annual benefits enrollment • Freedom from following specific service bureau schedules
online is also great because we • Instant, current data analysis and reports—anywhere, anytime
have hundreds of employees in • Cost savings and measurable return on investment
remote locations.” • More efficient, leaving more time to focus on a company’s core business
objectives
Kathy George
• Proven security and confidentiality of employee data
Payroll Manager
• Ability to leverage and use latest technologies without having to support
Nikon, Inc.
them internally
Ultimate Software Proprietary and Confidential 2

6. Software-as-a-Service: How It Works
“With SaaS, Ultimate Software
oversees the tape backups, Anytime/Anywhere Access. With UltiPro’s SaaS, HR administrators have every HR
necessary testing, and other IT function organized into one application, accessible anytime, 24-7, from anywhere there
elements that companies are is an Internet connection—office , home, or on the road. But the efficiency,
expected to have to stay in convenience and benefits of SaaS-delivered UltiPro extend beyond the HR
compliance with Sarbanes- department.
Oxley. It made sense from a
resource perspective for us to Managers and employees—any designated user—can access the self-service features
give Ultimate Software those of UltiPro. Tasks once administered by an HR team, like updating employee
responsibilities than for us to information, logging paid time off, changing benefits data, reviewing compensation or
make additional investments.” performance review history, or running reports and analytics, are self-administered
through SaaS. Managers and employees can access UltiPro with the same around-the-
Vince Pepenelli
Senior Manager of HR
clock convenience. They gain greater control, and HR staff recovers hundreds of hours
Constar once spent updating and inputting information and answering employee and manager
inquiries.
Licensed software resides on a company’s in-house server and requires in-house
hardware, maintenance, and support.
With SaaS, Ultimate Software houses the technology and applications in its secure,
hardened data center and provides 24-7 service, support, maintenance, upgrades, and
safe data storage. There’s no large, up-front capital expenditure, and companies
lacking technical infrastructure or investment dollars can get the same leading-edge
technology and HR management tools as larger firms. It’s the most business value at
the most affordable price.
With two hardened, secure, SAS70-compliant facilities—an FEMA Class 1-rated facility
in Miami, built to withstand fires, natural disasters, power outages, sabotage, and theft,
and a center in Atlanta with 24-7 security and N+1 Redundancy on all critical
systems—SaaS customers benefit from advanced disaster protection and recovery.
Below is a high-level view of how Ultimate’s SaaS works. See a detailed security
diagram on page 12.
Because hundreds of companies, many with thousands of employees, trust Ultimate
Software to manage their most confidential data, the company has mastered and
practices all proactive security steps and procedures to assure seamless, worry-free
user performance. Ultimate Software:
Ultimate Software Proprietary and Confidential 3

7. 1. Became the first HR/payroll Software-as-a-Service provider to be awarded the
ISO/IEC 27001:2005 Certification in January 2008. This certification validates
that Ultimate Software implemented a sound and secure information security
management system for the SaaS environment.
2. Completed SAS-70 Type II audits. This stringent annual procedure ensures that a
SaaS provider has been scrutinized carefully by independent auditors and is
following all proper security processes.
3. Earned a Safe Harbor certificate from the Department of Commerce. This
published privacy policy ensures the team has employed pre-defined procedures
around privacy and is adhering to good business standards.
4. Extensive security experience. Ultimate Software’s enduring security history is
the reason SaaS is far superior to almost any in-house system. A seasoned SaaS
provider with numerous corporate clients has a proven track record of overseeing
and administering system protection for a variety and multitude of applications.
Ultimate Software conducts Network Penetration Testing (NPT) regularly. These tests
by third-party auditors assess security in every component of a SaaS network by
testing and identifying potential vulnerabilities. The company has road tested and
perfected many times over all of the significant security functions. As experts with so
many corporate clients trusting them to safeguard and protect data around the clock,
without fail, they are at the forefront of leading-edge security practices.
Ultimate Software employs a full-time staff of security experts, accredited as Certified
Information Security Professionals (CISSP). “CISSP” indicates rigorous industry testing
and signifies a more elevated skill set in information-security and related best practices.
The structurally hardened and reinforced buildings for storing the UltiPro databases
have:
• Securely locked enclosures where the servers are located
• Fully redundant power, cooling, and communication systems
• Technologies such as bio-metric security systems
• Video surveillance and a dedicated 24-7 security staff
In addition, a nightly back up of all of your HR, benefits, and payroll data, including all
employee records and historical data, is encrypted, put on tape, and sent to an off-site
storage facility. This can be used to restore your UltiPro system to another facility,
further ensuring business continuity.
In 2007, Ultimate Software’s IT team received the first-place Best IT Team award
from the America Business Awards. With UltiPro through SaaS, you have peace of
mind knowing that your solution is in the most experienced hands and remains
protected.
Ultimate Software Proprietary and Confidential 4

8. For Every Company, Large and Small
“With the service bureau, we Depending upon the size of your company, the number of employees, the available
had a small window of time resources and capital, the presence or lack of a dedicated human resources team, and
to submit our payroll data your knowledge of available human resources management systems, you may
and even less time to ensure currently manage your human resources in a number of ways. The most basic and
its accuracy. With all of the traditional means is completely in-house, with or without the advantage of an HR
manual effort that used to be software application for some or most of your processes.
required, payroll used to take
me a whole week and now it In the absence of an HCM software solution, you may be compiling data in
takes a half day.” spreadsheets, or even manually with forms and paper filing systems. Recording and
transferring data accurately into usable reports by either of these means is a labor-
Tom Short
intensive and time-consuming endeavor. Staying HR-compliant, processing payroll,
Payroll Specialist
Oncology and Hematology Care and administering benefits in this manner can tie up valuable HR administrative hours
that could be better spent developing and retaining top talent or contributing higher-
level strategizing to your leadership team.
Additionally, more strategic talent management functions, such as recruiting, employee
“UltiPro’s functionality for development, and evaluating performance and compensation, are becoming mission-
performance management is critical in the rapidly growing competition for skilled people and are nearly impossible to
becoming a key component of manage effectively with the above out-dated method.
our talent management strategy.
The solution is empowering us You may outsource part of your processes, such as payroll, through a service bureau.
with the ability to streamline Or perhaps you outsource several processes to multiple vendors. Although outsourcing
our employee review process, can relieve some of the pressure of HR management, it has its limitations and
better identify employee drawbacks, including the strict adherence to a service bureau’s deadlines and
competencies, analyze areas requirements and time lags and restrictions in running reports with up-to-the-minute
where we need employee data.
development, and improve
overall satisfaction.” Regardless of your industry type, its size, whether your employees are in one central
location or dispersed in multiple areas, or whatever your method today for managing
Carol Summersgill HR functions, advancing to UltiPro’s SaaS will give you an award-winning,
Vice President of Human Resources comprehensive, convenient, easy, and efficient system for managing every aspect of
Therma-Tru Doors HR for the complete employee life cycle, from recruitment to retirement, while
maximizing time and resources for greater corporate success.
You’ll have all of your processes managed under one umbrella with a single-point of
contact. You’ll have all the advantages of an in-house system—and more! You’ll control
when and where you use the system, with 24-7 access and support. You’ll manage
your HR functions instantly online while reducing administrative tasks and paper work,
but you’ll be free from service bureau restrictions and limitations. And you won’t need
in-house technical equipment, support, or service. Instead, your company can pour its
saved time and technology resources and expertise into accomplishing your core
business objectives.
Ultimate Software Proprietary and Confidential 5

9. Benefits for Your Entire Organization
“Reporting is so much faster and
relevant now that we have UltiPro through SaaS will greatly enhance your HR management. But the
UltiPro. Previously, the reports benefits are much more far reaching as they touch everyone in your organization
from the service bureau were and the company as a whole.
often outdated and weren’t
always correlated with the data Examples of company-wide benefits include:
from our HR system, so we had
to compare the results and
reconcile them, UltiPro’s Top-Level Executives/Line and Department Managers
reporting is point-in-time and • Evaluate metrics and business intelligence for workforce trends
very flexible, so I can quickly get • Convenient 24/7, anytime/anywhere self-service access—at the office, at home, or on the road
what I need. I used to spend • Empowered through self-service and decreased reliance on HR
more than two months putting • Instant, easy-to-use, up-to-date reporting and analytics
• Easy, efficient administration of performance reviews
together benefits statements for • Approve staff requests
employees. UltiPro has been a • Manage paid time off
life-saver for me—I can run very • Monitor and forecast staffing levels
complete total compensation • Access and evaluate headcount reports
reports for employees in less
than a day.”
Candy Scranton HR Administrators
HRIS Manager • Convenient 24-7, anytime/anywhere access—at the office, at home, or on the road
Spirit Mountain Gaming • Easy, efficient, comprehensive, state-of-the-art HR management under one umbrella
• Manage HR functions for unlimited employees in any location
• Efficient online benefits administration
• Instant, uncomplicated, up-to-date reporting
• Management and distribution of thousands of resumes easily online
“We are experiencing an • Hours of saved time in answering manager and employee inquiries
• Award-winning service and technical support from application and HR experts
annual cost savings in excess • Increased time for higher-level strategizing and recruiting, hiring, and developing employees
of $500,000 through the • Improved workflow for form-intensive processes with approvals
elimination of service bureau • Monitor and assure HR compliance
fees, increased HR and payroll
productivity, and faster and Employees
more efficient reporting.” • Empowered through self-service and greater control of personal information
• Convenient 24/7, anytime/anywhere self-service access—at the office, at home, or on the road
Dave Mahler • Instant information and updates without assistance from HR
Vice President and Treasurer • Improved company-wide communication
Genmar Holding Company • Organized information in one place
• Less paperwork
• Improved training and development tracking and planning
• Increased efficiency, time, and productivity focused on core responsibilities
Entire Organization
• Improved efficiencies and paperless workflow
• Improved company-wide communication
• Greater employee satisfaction
• Minimal up-front capital expense
• Same HR management advantages of Fortune 1000 firms without up-front investment
• Improved ability to recruit, hire, train, and retain top talent
• Ability to better leverage in-house IT to accomplish core business objectives
• Greater ROI in time and money
Ultimate Software Proprietary and Confidential 6

10. Sample Features of UltiPro® through SaaS
CORE
SOLUTIONS
Human Resources • Track employment history and performance, time and attendance, job, salary, and organization
information
• Streamline processes for performance reviews, competency assessments, succession planning,
training, and development
• Record key government compliance and reporting including COBRA, HIPAA, OSHA and Workers’
Compensation, and EEO Compliance
• Meet Social Security and HIPAA confidentiality compliance
Benefits • Set up and administer all health and welfare benefits plans, including Section 125 plans, deferred
Administration compensation and all voluntary and optional benefits programs
• Allow employees to check benefits options and coverage online and update beneficiary information
Payroll • Process payroll from start to finish in a few steps, including calculating gross-to-net pay, overtime pay
Administration rates, shift premiums, garnishments, and levy calculations
• Generate NACHA files, check/direct deposit advises, and general ledger files
• Generate off-cycle checks and voiding payments on demand
• Track payroll progress online with checks and balances for streamlined auditing and reconciliation
Portal for • Save hours of time answering calls and inquiries by granting employees instant, security-protected
Employee access to their paycheck details, benefits summaries, frequently used forms, and company information
Self-Service • Enable employees to update personal data, change direct deposit accounts, update
dependents/beneficiaries information, and request paid time off
Portal for • Enable executives and managers to access analytical reports, headcounts, open positions, job history,
Manager and skills and certification inventory, compensation information, etc.
Executive
Self-Service
Standard • Run, without support from central HR/payroll or IT, hundreds of reports and analytics, including
and Ad hoc reviews, headcount reports, average salary reports, government compliance, general ledger reporting
Reports and other real-time business intelligence, plus BI tools for ad hoc reporting and analytics
ADDITIONAL
FEATURES
Enhanced • Manage every aspect of recruitment
Talent – Automate entire recruiting and applicant tracking process –management team, recruiters, HR
Management staff can track and manage tasks such as posting open jobs, reviewing resumes, screening
Capabilities candidates, scheduling interviews, and more
• Administer performance evaluations efficiently and easily
• Organize and manage learning and development
• Facilitate time and labor management
IT Support • Cut costs and free in-house IT support from server installation and management, software upgrades,
log-in management, hardware maintenance, backup and recovery management, capacity planning,
application performance tuning, inventory management, server monitoring and management,
technology refresh, and DBA support
Scalability/ • Have peace of mind knowing applications have been rigorously tested and can withstand two key
Reliability stresses: (1) single-user, high-volume functions (a huge payroll or check run) and (2) high-frequency,
simultaneous-user demand, (thousands of employees needing W-2s, enrollment information or other
data at the same time)
Enterprise • Interface easily with third-party applications such as general ledger, point-of-sale, etc.
Integration
Ultimate Software Proprietary and Confidential 7

11. While there are numerous advantages in using UltiPro, there are four primary benefits
that lead companies to choose UltiPro through SaaS for managing human resources:
in-house control with outsourced convenience, return on investment, best-in-
class technology with peace-of-mind security, and award-winning and expert
“SaaS provides us with control service.
of our data, without the hassles
of server storage, system
maintenance and upgrades… In-House Control with Outsourced Convenience
It’s enhancing our employee-
centric culture, increasing Whether currently using an external service bureau or an on-premise system, there
overall productivity levels, are advantages in moving to SaaS. Companies switching from a service bureau to
and reducing both hard and SaaS-delivered UltiPro, experience the same maintenance-free, worry-free support a
soft costs.” service bureau offers but with far more efficiency and hands-on control over all
processes, schedules, and report access. On the other hand, those already using in-
Claudine Tudgay house systems retain in-house control with the bonus of eliminating in-house IT support
Payroll Director and equipment and the associated expense.
The Container Store
SaaS is a more advanced form of outsourcing. There are no rigid payroll schedules or
deadlines with SaaS like those often imposed by service bureaus. Users decide how
often and when to process payroll, assuring accuracy and speed, yet more flexibility.
“Before UltiPro, our IT team was Software functions and reporting are immediately available, self-controlled, processed,
extremely busy, so we had to and ready in just a click or two.
wait in line for things like having
them install UltiPro’s quarterly Ultimate’s SaaS assures higher functionality and control than outsourced processes,
tax updates, causing some real and elimination of hardware, updates, maintenance, and tech support demands
issues. UltiPro delivered associated with on-premise solutions. By relying on Ultimate Software to manage all
through SaaS has addressed system responsibilities, time can be better spent using data to drive new business
this problem. Now Ultimate efficiencies, programs, or initiatives, as opposed to all the time typically devoted to
Software performs our upgrades managing and maintaining systems.
for us and maintains the
hardware, so we can all focus All subscribers experience is worry-free performance because behind the scenes,
on other projects. I like knowing Ultimate Software expertly manages every system detail, including hardware
that our data resides safely and purchases, software installations, quarterly federal and state employment legislative
securely in Ultimate’s state-of- updates, software versioning upgrades to keep speed and performance optimized, and
the-art data center, and I can leading-edge security and monitoring tools for ultimate protection.
quickly access that data any
time I need to.” Unlike on-premise IT departments often hampered by multiple priorities and limited
resources, Ultimate Software’s staff can devote 100% of its energies to ensuring that a
Barbara Cuttino system remains optimized, security-protected, up-to-date, and problem-free. Who
HRIS and Payroll Manager better to support and maintain UltiPro than the experts who created it? They have
Alfa Laval seasoned experience on their side from performing hundreds upon hundreds of
installations and upgrades routinely—many for companies with thousands of
employees and very complex needs. Their awareness of minute details and knowledge
of every component and proper execution save clients time and frustration.
Fewer components…far more space. Because bulky servers and other hardware
components are housed off-site, SaaS frees up an organization’s valuable data center
space that can be used for other services. A decrease in hardware and the space to
house it translates to an increase in capital for other core business line items.
Ultimate Software Proprietary and Confidential 8

12. Return on Investment
With shareholders and management demanding greater ROI accountability at
every level, most HR leaders are actively seeking ways to maximize resources to
meet competitive market conditions. Ultimate’s SaaS has conclusively shown
strong ROI rewards by helping boost a company’s productivity and reduce both
hard and soft costs.
“Our reduction in costs
exceeds $200,000 per year Return-on-Investment Rewards with SaaS
…Everyone is functioning
Frees up capital and cash flow Matches monthly service bureau affordability, but
more productively and Every dollar a company saves on non-productive with higher productivity and efficiency
strategically.” system costs can be funneled back into core More hands-on control; 24-7 flexibility; wider
competencies to drive greater profit. With minimal up- functionality; deeper, customized reporting
Kathy Milligan front costs, no licensing fees, no in-house equipment, intelligence; and better security protection all lead to
Vice President of Human Resources and many more productivity and efficiency tools than tangible dollar savings.
General Investment Development service bureaus offer, savings can be significant in
relatively short time.
Leverages Fortune1000 business intelligence Enables flexibility without huge upfront costs
advantages without steep costs UltiPro through SaaS can be as robust or as
SaaS levels the playing field for smaller-to-medium streamlined as desired, depending upon a company’s
“We are anticipating a savings sized firms benefiting from many of the same powerful size, processes and expected growth. The integration
of $400,000 over a five-year tools and controls the larger corporations use to of all HRMS/HCM initiatives, resulting in deeper
period. UltiPro’s predictable manage and maximize their workforce potential, functionality, is another benefit of SaaS.
per-employee, per-month without the staggering IT investments these bigger
pricing has erased the sticker firms have made.
shock we had at month’s end Prevents high costs of obsolescence Reduces training time and turnover costs
with our previous provider.” With technology lifecycles now measured in months, SaaS eliminates costly training of new hires or existing
not years, SaaS shields against the significant financial teams whenever the software changes. With IT
Sonny Ramdeo costs of upgrading outdated technology or software. worker-replacement costs at roughly 1.5 to 2 times the
Director of Payroll and Workforce annual salary, plus double-digit placement fees, sign-
Systems on bonuses for in-demand skills, relocation costs, and
Promise Healthcare higher-than-average annual increases, in-house
system costs mount rapidly.
Drives sharper decision-making Frees up office space
The real-time speed and in-depth analytics assure Without cumbersome system hardware and servers,
faster, more confident decisions on staffing, budgeting, companies gain more usable workspace for
and funding, all of which directly impact a company’s employees.
bottom line.
Frees up talent and time Enhances autonomy, results, and satisfaction
Rather than losing hundreds, even thousands of While a service bureau can only process specific
employee hours installing, managing and payroll and benefits functions, SaaS capabilities can
troubleshooting systems, SaaS users can focus more actually elevate a team’s total productivity far beyond
on greater company efficiencies and profits. the specific tasks themselves.
Increases productive time Empowers employees
SaaS frees up entire work days by reducing or Equipped with best-in-class operating systems,
eliminating time-intensive tasks like manual printing software, reporting tools and processes, employees
and distribution of direct deposit information. HR not only reduce their job frustrations and increase their
professionals save hours of time answering capabilities, but also boost their confidence and self-
employees’ telephone and email queries about payroll reliance. That in turn increases job satisfaction,
and benefits information. With SaaS, all employees innovative thinking and professional growth—potential
access their up-to-date information online. benefits to the bottom line.
Eliminates cost of internal disaster recovery Delivers top-notch security with no added cost
On-premise disaster recovery systems are very Most companies would find it cost-prohibitive to match
expensive to maintain. With SaaS, Ultimate Software the functionality of Ultimate’s SaaS security.
provides and maintains a first-class disaster recovery
system, relieving businesses of this cost.
Ultimate Software Proprietary and Confidential 9

13. Return on Investment
“…application hosting The first recognizable financial benefit in selecting UltiPro via SaaS is the savings in
(Software-as-a-Service) capital expenditures. Because Ultimate’s SaaS is an affordable, pay-as-you-go
customers have measured subscription model paid per-employee-per-month, minimal up-front cash is necessary,
significant bottom line benefits which frees capital for other investments to grow your business. There is no cost for
…more than half interviewed expensive in-house technical equipment or the personnel to maintain it, like with on-
experienced an ROI greater than premise systems. You get state-of-the-art, robust strategic HR tools and increased
100%. efficiencies without investing huge amounts of money.
This is consistent with IDC case SaaS also eliminates large start-up expenses and the cost of hardware and application
studies conducted with three upgrades, which reduces operating costs that would otherwise exist with an on-premise
Ultimate Software customers system.
reporting ROI percentages
ranging as high as 188%.” Additional ROI over time occurs with increased efficiencies in processes, resulting in
savings of time and improved productivity
Karen Moser
Senior Research Analyst
In cases taken from Ultimate Software’s client files, measurable SaaS results clearly
International Data Corporation (IDC)
show the substantial ROI and rapid payback times:
“By switching to SaaS, we’ve
found the information on both
the functionality and cost Total ROI Payback Analyst
Company
effectiveness to be true, and Employees Results Time: Source:
expect to recoup most of our
initial investment within the first
National Gypsum 2,700 157% 1.01 years IDC, 2006
two years of using SaaS, and
then start achieving major
savings very quickly. We IntelliRisk
4,275 778% 1.8 months IDC, 2006
Management
anticipate saving approximately
$850,000 in a five-year period.”
Waterloo Industries 1,100 214% 6 months IDC, 2006
David Ochoa
HRMS Manager
National Gypsum Genmar Holdings, Inc. 3,341 80% 1.6 years
Nucleus Research,
Inc., 2004
Ultimate Software Proprietary and Confidential 10

14. Best-in-Class Technology/Peace-of-Mind Security
Better technology…fewer worries. Ultimate Software invests in top-grade systems to
serve a multitude of corporate clients. As a result, the huge buying power, leading-edge
security monitoring systems, and expert staff mean subscribers utilize elite-level
hardware, software, and IT support services few companies could ever afford in-house.
With rapid changes in technology, most companies could not afford to continually
update hardware for maximum performance. Because Ultimate Software’s business is
UltiPro and hosting the applications on secure, state-of-the-art IT equipment, the
expense of costly upgrades to prevent obsolescence falls to Ultimate Software and not
to your company. You continue to save in capital investments over time but keep
receiving the most up-to-date functionality.
Software upgrades, too, are done for you by Ultimate Software’s technology and
UltiPro experts. You get all of the advantages of product and system upgrades
immediately upon availability but none of the hassles of installing and maintaining
them.
Ultimate Software safeguards the confidential employee data systems and
processes via SaaS for hundreds of corporations, some with thousands of members all
networked across global locations. Each company’s data is housed in a physically
separate data base. Only company personnel with access rights and secured
passwords can see their specific company data, and the software itself is rigorously
tested to ensure security integrity.
Recalling an 8-day power loss at
The only thing shared is the application itself. Sharing a SaaS application is much like
corporate offices:
how millions of corporate users safely share Windows or Microsoft Office applications
and online updates, yet they maintain a totally unique and separate database and
“During a weeklong power
usage. Ultimate’s SaaS includes many layers of embedded protection designed to
outage, my team could access
safeguard the integrity and privacy of human resources data. These layers are
our HR/payroll over the
incorporated through application, database, and web-level security built into the
Internet, so we had no
software.
downtime with our human
resources and payroll system.
To protect data in transit Ultimate Software’s security safeguards include layers of
We were very impressed with
redundancy, duplicate network operations control centers, and encrypted
Ultimate’s capabilities.”
transmissions.
Louis Nault
Director of Finance All data is hosted at a secure site, backed up regularly, and frequently checked for
Elizabeth Arden viruses using secure-network connections to ensure privacy of data. Unlike many
company servers, Ultimate Software’s hosted servers are protected against fires,
natural disasters, power outages, sabotage and theft. SaaS provides better protection,
security, and confidentiality than many on-premise systems.
In January 2008, Ultimate Software became the first HR/payroll Software-as-a-Service
provider to be awarded the ISO/IEC 27001:2005 Certification for its SaaS environment.
ISO/IEC 27001 is a global industry standard created by the International Organization
for Standardization and the International Electrotechnical Commission that validates
organizations that have implemented a sound and secure information security
management system.
On the next page is a diagram that outlines the multiple layers of security in Ultimate’s
SaaS delivery model.
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15. Ultimate’s SaaS Security
The following diagram illustrates the multiple layers of security in the SaaS delivery model.
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16. Award-Winning, Expert Service
With Ultimate Software’s SaaS, you receive total accountability with fewer points of
contact. When questions or concerns arise about hardware, software, networks,
operating systems, security or any other related issue, you have an expert single point
of contact immediately, 24-7, as opposed to having an in-house system with many
parts and different vendors or a service bureau unable to help with anything but the
bureau’s specific processes or reports.
All customers have a named service representative assigned to their account for
personal, prompt attention to their needs and inquiries.
Comprehensive, single-point-of-contact service from experts frees users from serving
as systems integrator or troubleshooter, dramatically reduces phone calls and
meetings, and protects budgets from steep and unexpected technical support fees
should problems occur. You focus on the most critical aspects of HR management,
while the technology behind it is taken care of for you.
Ultimate Software’s national support team is staffed by professionals with average
industry experience of more than 12 years. Many support team members are Certified
Payroll Professionals (CPP), and all staff are encouraged and rewarded if they receive
CPP certification, in addition to other industry certification.
The company has earned rigorous Support Center Practices (SCP) certification for
eight consecutive years along with a first-place STAR service ranking by the Services
and Support Professional Association and numerous other customer service,
employee, and performance awards.
Ultimate Software was positioned as the sole Leader
“SaaS is reliable and never in Forrester Research, Inc.'s 2008 U.S. Mid-Market
down. We are very pleased with HR solutions Wave ranking, identified in the Leaders
Ultimate’s customer support.” quadrant of Gartner, Inc.’s “Magic Quadrant for U.S.
Midmarket Human Resource Management Systems,
Tom Short
2006,” and named the 2005 Payroll Provider of the
Payroll Specialist
Oncology and Hematology Care Year by the Human Resources Outsourcing
Association.
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17. Summary
Organization leaders know that their company’s success is dependent upon their
people. As baby boomers leave the workforce, college graduates have greater
employment options, and employer loyalty declines, finding and keeping good
employees is one of the greatest challenges companies face today. They cannot afford
not to make HR management a key business objective—if they want to hire and retain
the best employees and further the growth of their companies.
To stay ahead of the competition, companies need a strategic, integrated, and
comprehensive solution for pro active talent management—one that leverages state-of-
the-art technology to reduce time-consuming administrative tasks and one that is
efficient, accessible anywhere at anytime, reliable, affordable, continuously developed
and upgraded, and worry-free.
SaaS-delivered UltiPro manages every facet of human resources, from recruitment
through retirement, through one easily accessible Web portal. It delivers optimal
convenience and functionality with best-in-class technology, security, and star-quality
service for a significantly measurable return on investment.
With UltiPro and SaaS, you spend more time strategizing and positioning your human
resources efforts to hire and retain top talent and bring greater HR value to your
company and its bottom line while Ultimate Software works behind the scenes to take
care of the details and run all processes smoothly and efficiently.
In 2009, Ultimate Software was ranked the #1 best medium-sized company to work
for in America by The Great Place to Work® Institute for the second consecutive year.
Ultimate Software ranked #3 on the list in 2006 and 2007. As a public company in the
business of human resources, Ultimate Software realizes the high value of recruiting
top talent and maintaining a passionate workforce. The same high-performance team
and the passionate, people-oriented culture that make the company one of the best
places to work in America drive the quality of UltiPro delivered through SaaS and the
award-winning service behind it.
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