ADP to Focus on Cloud-Based Products
Automatic Data Processing is one world’s top leaders in payroll services. ADP offers innovative products to businesses of all sizes that give them the tools to manage human resources and administrate benefits while ensuring that each employee gets paid promptly and properly. Since ADP has spun off its Dealer Services department into its own publicly traded company, ADP has decided to refocus its business on payroll and human resource products.
An unlikely revenue stream for ADP has been its cloud products. Although ADP’s numbers are down since the spin off, analysts believe that cloud will help ADP regain these lost profits. ADP has been selected to deliver cloud products related to the Affordable Care Act. In addition to this deal, ADP has plans to release applications entitled RUN, Workforce Now and Vantage as cloud offerings for businesses of all size. ADP mentions that RUN was built for small organizations. Workforce was built for medium sized org and Vantage is ADP’s suite for large scale organizations.
A report from Forbes highlights ADP’s new cloud endeavors and the benefits the organizations gains from offering cloud products. Forbes magazine mentions, “Cloud-based solutions eliminate the need to hire professionals at ADP’s end to help clients manage their payroll and HR responsibilities. As more and more clients shift to these online services, labor costs for ADP will decrease and help in improving margins. Also, since the service is online, scaling up the service will be easier and would not require intensive capital expenditures.”
ADP’s CEO is Carlos Rodriguez and the payroll processing giant is based in Roseland, NJ. In an earning’s call transcript, Rodriguez said, “We successfully migrated almost 100,000 existing clients in the small and mid-market to our newest cloud-based platforms. This brings the total number of businesses that currently benefit from ADP’s cloud-based solutions to over 430,000. ADP now has more than 50,000 clients enjoying our HCM platforms, Workforce Now and Vantage, compared with 40,000 a year ago.”
