A Glossary of Key Terms in Cloud Computing & Self-Hosting for HR & Recruiting Professionals
In today’s rapidly evolving digital landscape, HR and recruiting professionals are increasingly interacting with sophisticated IT infrastructure and automation tools. Understanding the fundamental terminology related to cloud computing and self-hosting is no longer just for the IT department; it’s crucial for strategic decision-making, vendor evaluations, and implementing effective automation solutions. This glossary demystifies key concepts, providing clarity and context for how these technologies impact talent acquisition, HR operations, and overall business efficiency.
Cloud Computing
Cloud computing refers to the on-demand delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”). Instead of owning computing infrastructure or data centers, companies can access services from a cloud provider like Amazon Web Services (AWS), Google Cloud, or Microsoft Azure. For HR, understanding cloud computing is vital when evaluating SaaS HRIS platforms, applicant tracking systems (ATS), or even AI-powered recruiting tools. Cloud solutions offer scalability, global accessibility, and often reduce the upfront capital expenditure associated with on-premise hardware, allowing HR teams to quickly deploy and scale solutions to meet changing business needs without extensive IT overhead.
Software as a Service (SaaS)
SaaS is a software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet. Most modern HR and recruiting tools—like Workday, Greenhouse, or even Slack for internal communication—are SaaS products. Users typically access SaaS applications via a web browser, paying a subscription fee rather than purchasing and maintaining the software themselves. For HR, SaaS eliminates the need for installation, maintenance, and complex infrastructure management, allowing teams to focus on using the tools to optimize workflows and employee experiences. It enables faster deployment, automatic updates, and easier integration with other cloud-based services, streamlining the HR tech stack.
Infrastructure as a Service (IaaS)
IaaS is a cloud computing service that provides virtualized computing resources over the internet. It gives users access to fundamental computing infrastructure such as virtual machines, storage, networks, and operating systems, allowing them to build and manage their own applications and platforms without the need to buy and maintain their own hardware. While typically managed by IT, HR leaders might encounter IaaS discussions when large-scale data analytics platforms for workforce planning are being considered, or when discussing custom application development that needs flexible, scalable computing power. It offers greater control and flexibility than SaaS or PaaS but requires more technical expertise to manage.
Platform as a Service (PaaS)
PaaS provides a cloud environment for developing, running, and managing applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app. It offers a complete development and deployment environment in the cloud, with resources that enable organizations to deliver everything from simple cloud-based apps to sophisticated, enterprise-level applications. HR professionals might engage with PaaS if their organization develops custom HR applications or specialized recruiting tools in-house, as it offers the tools and environment for development without managing the underlying servers. This can accelerate innovation and customization in HR tech.
Self-Hosting
Self-hosting, also known as on-premise hosting, means that an organization hosts its applications, data, and websites on its own servers and infrastructure, typically located within its own data center or office. This contrasts with cloud computing, where a third-party provider hosts these resources. While self-hosting offers maximum control over data security, compliance, and customization, it also entails significant responsibility for hardware maintenance, software updates, power, cooling, and network connectivity. For HR, self-hosting might be a consideration for highly sensitive data or specific compliance requirements, though it comes with higher upfront costs and ongoing operational burdens compared to cloud solutions, requiring dedicated IT resources.
On-Premise
On-premise refers to software and infrastructure that is installed and runs on computers located physically within an organization’s own facilities, rather than on remote servers in a cloud provider’s data center. Historically, most business applications, including HRIS and payroll systems, were on-premise. While modern trends favor cloud solutions, some organizations, particularly those with stringent data sovereignty or legacy system requirements, still maintain on-premise infrastructure. For HR, choosing on-premise systems means greater direct control over data and security protocols, but it also means the organization is responsible for all hardware, software licenses, maintenance, upgrades, and disaster recovery planning, which can be costly and resource-intensive.
Hybrid Cloud
A hybrid cloud environment combines public cloud resources (like AWS, Azure, Google Cloud) with private cloud infrastructure (on-premise data centers or private clouds). Data and applications can move between these two environments, offering the flexibility to leverage public cloud scalability for non-sensitive workloads while keeping sensitive data and critical applications within a private, more controlled environment. For HR, a hybrid approach might mean storing employee records with strict compliance needs on a private cloud, while using public cloud services for talent acquisition platforms or data analytics that can benefit from public cloud elasticity. This allows organizations to optimize for both security and agility.
API (Application Programming Interface)
An API is a set of defined rules that allows different software applications to communicate with each other. It acts as an intermediary, enabling data exchange and functionality sharing between systems without direct user intervention. In HR and recruiting, APIs are fundamental for integration. For example, an ATS might use an API to pull candidate data from LinkedIn, or an HRIS might use an API to send employee data to a payroll system. Automation platforms like Make.com or n8n heavily rely on APIs to connect disparate HR tools, enabling seamless data flow and process automation across recruitment, onboarding, and employee management workflows, significantly reducing manual data entry and errors.
Webhook
A webhook is an automated message sent from an application when a specific event occurs. It’s essentially a “reverse API” because instead of making a request, an application sends data to a pre-configured URL when something happens. For instance, when a new candidate applies through an ATS, the ATS can send a webhook notification to an automation platform. This “push” mechanism is highly efficient for real-time automation. HR teams leverage webhooks to trigger immediate actions—like sending an automated email to a candidate after they submit an application, initiating an interview scheduling process, or updating a CRM with new lead information—without constant polling, making automation workflows significantly more responsive and effective.
Containerization
Containerization is a lightweight, portable, and efficient way to package applications and their dependencies, allowing them to run reliably across different computing environments. A container bundles an application’s code, runtime, system tools, libraries, and settings into an isolated unit. While often an IT-centric concept, HR leaders might hear about containerization when discussing the deployment of custom HR applications or specialized AI models for talent analytics. It enables faster deployment, consistent environments, and easier scaling of applications, which can indirectly benefit HR by allowing IT to more quickly and reliably deploy new tools or updates that support HR initiatives.
Virtual Machine (VM)
A Virtual Machine (VM) is a software-based emulation of a physical computer system. It runs on top of physical hardware (a host machine) but operates as an independent computer with its own operating system, CPU, memory, and storage. Multiple VMs can run on a single physical server, efficiently utilizing hardware resources. While distinct from containers, VMs serve a similar purpose of isolation and resource allocation. HR might encounter VMs in discussions about hosting specialized legacy HR systems, or when setting up secure, isolated environments for testing new software or processing sensitive data. VMs provide a robust layer of isolation and security, making them suitable for critical business applications.
Serverless Computing
Serverless computing is a cloud execution model where the cloud provider dynamically manages the allocation and provisioning of servers. Developers simply write and deploy their code, and the cloud provider handles all the underlying infrastructure. Users are charged based on the actual computation time and resources consumed, rather than for pre-purchased server capacity. While a technical concept, HR benefits indirectly from serverless through applications that scale effortlessly during peak demand—like a surge in job applications after a major campaign—without any manual intervention. This efficiency translates to cost savings and faster processing for various HR functions that experience fluctuating workloads.
DevOps
DevOps (Development Operations) is a set of practices that combines software development (Dev) with information technology operations (Ops). It aims to shorten the systems development life cycle and provide continuous delivery with high software quality. While primarily an IT methodology, DevOps principles of automation, collaboration, and continuous improvement are increasingly relevant to HR. For example, HR teams can adopt similar agile approaches to iterate on recruitment processes, continuously improve onboarding experiences, or use automation to streamline HR tech stack deployments. A strong DevOps culture within IT can mean faster, more reliable delivery of HR-enabling technologies.
Data Governance
Data governance refers to the overall management of the availability, usability, integrity, and security of data in an enterprise. It includes establishing policies and procedures for data access, storage, quality, and retention. For HR, robust data governance is paramount due to the highly sensitive nature of employee and candidate information. It ensures compliance with regulations like GDPR, CCPA, and various privacy laws, mitigates risks of data breaches, and maintains data accuracy for reporting and analytics. Understanding data governance is critical when evaluating any HR tech solution, cloud or on-premise, to ensure that employee data is handled responsibly and legally throughout its lifecycle.
Scalability
Scalability refers to a system’s ability to handle a growing amount of work or its potential to be enlarged to accommodate that growth. In the context of cloud computing and self-hosting, scalability means a system can expand its capacity—by adding more resources like servers, memory, or storage—to meet increased demand without compromising performance. For HR, scalability is crucial for applications that experience fluctuating workloads, such as an ATS during a major hiring push or an HRIS supporting a rapidly growing workforce. Cloud solutions typically offer superior scalability, allowing HR systems to seamlessly adapt to business growth or peak recruiting periods without significant manual intervention or upfront hardware investments.
If you would like to read more, we recommend this article: Make.com vs n8n: The Definitive Guide for HR & Recruiting Automation
