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ADP buys into Software as a Service

Consolidation on demand
Fri Aug 18 2006, 17:56
ON-DEMAND human resources firm Employease is to be acquired by payroll processing giant ADP, itself one of the biggest consumers of software as a service.

The deal cements a two-year-old alliance that has seen the pair offer payroll and HR services over the web.

ADP is one of Salesforce.com's biggest customers and the Employease deal supports the old contention made by greybeards everywhere that this application service provider business looks a helluva lot like the old bureau/time-sharing model if you can ignore the web 2.0 pixie dust.

It also continues the theme of consolidation in the sector. In deals agreed so far this year, RightNow Technologies has picked up salesforce automation host Salesnet and Salesforce has added mobile-enabling technology firm Sendia. µ

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