Containers Expo Blog Authors: Liz McMillan, Roger Strukhoff, Elizabeth White, Hollis Tibbetts, Sematext Blog

Related Topics: Recurring Revenue, Containers Expo Blog

Recurring Revenue: Article

Life after Oracle and Dave Duffield's Workday Start-Up!

PeopleSoft founder Dave Duffield's Workday start-up sure has been a quiet little thing. So unlike the mouthy Salesforce.com

For a company born out of a headline-grabbing clash of wills between two industry titans - one practically beloved by his users, the other, well, not so much - a company set up to pioneer the latest disruptive distribution scheme, a model likely to change the face of the software industry forever, and use chi-chi infrastructure like Linux, Java, MySQL and Tomcat, PeopleSoft founder Dave Duffield's Workday start-up sure has been a quiet little thing. So unlike the mouthy Salesforce.com. So when we found out that industry analyst Amy Wohl was going that way we asked her to report back. Here's what she says.

When I first heard (in 2006) that David Duffield, the founder of PeopleSoft, was going to start a SaaS company to build a full-blown ERP portfolio I was excited. I felt that software-as-a-service, a game changer if ever there was one, was finally coming of age now that it was embraced by mainstream, enterprise-oriented, mission-critical software.

Of course, there are contradictions in that statement. SalesForce.com certainly thinks of itself as mainstream, enterprise-oriented, mission-critical software, but perhaps less so in 2006 than now. And Workday, Duffield's new company was not quite so ambitious; the initial goal and current focus is to build ERP software for the mid-market, focusing on companies with 100-600 employees, but it's got enterprise customers already, a year after its first software shipped.

But let's not talk about contradictions, instead let's examine Workday's plans and see how well things are going. I got an update this week from Stan Swete, Workday's CTO, that puts Workday on schedule with its roadmap.

Workday's plan was to provide software services in four areas: Human Capital Management; Resource Management; Financial Management and Revenue Management.

Human Capital Management was scheduled to be available first and went into production last November. It includes modules for organization, lifecycle, compensation and payroll management, and workforce development. Workday is currently using ADP for payroll management, but expects to have its own offering by 2009.

Resource Management includes Supplier Accounts, Expenses, Resource Management, and Procurement. It's scheduled to ship in 2008.

Financial Management includes Financial Accounting and Reporting, Cash Management, Planning and Budgeting, and Management Accounting. The Financial Accounting and Reporting and Cash Management modules are shipping now; other modules are expected to ship next year.

Revenues Management includes Customers Accounts, Orders, Billing, and Revenue Recognition. It's scheduled to ship in 2008.

Workday is currently shipping to about 25 customers, a two-to-one mixture of technology companies and non-technology companies. It's Workday's strategy to target technology and services organizations, especially in food services and professional services. Swete seemed a little surprised that it's seeing a smaller number of bigger deals than it planned, meaning it's returning more money than it thought it would at this point. It already has two larger-than-intended customers, Lifetime Fitness (17,000 employees) and, in the last few days, Chiquita (25,000).

Generally speaking Workday expects to be selling to customers who are new to sophisticated ERP solutions, rather than replacing existing implementations, although it's already replaced Peoplesoft/Oracle at McKee. Of course, it expects to move into replacement mode later on - when customers start finding it pricier to upgrade their old systems than to switch to the SaaS model - just as it expects to garner more enterprise customers. (SaaS is becoming more appealing to larger firms.)

Why, one might ask, is it seeing such early success? Workday and I are in pretty violent agreement here.

· The ERP solutions built by traditional software vendors are expensive to buy, very expensive to implement, and expensive to upgrade (since customizations often have to be entirely rewritten). That makes them not only expensive but inflexible, a barrier to the more agile and dynamic world of the Internet.

· Rewriting a traditional ERP solution to a SaaS platform is tough. ISVs have to address both business model and architectural issues. Efforts often flounder on the unwillingness of ISVs to understand that they're writing an application that might be used by an enterprise (that they'd like to keep on their current, more expensive software) as well as an SMB. Applications are often written to be deliberately less appealing to enterprise customers, shooting them in the foot. Of course, it's a lot easier to write a great SaaS application if you have no existing business model or installed software to consider.

· David Duffield has a great reputation. Many customers are delighted to consider any product he's associated with.

We asked if Workday had to sell SaaS before it could sell Workday. It's clear Workday's experience mirrors what we're seeing elsewhere:

o Prospects are much less concerned about going to SaaS; concerns about security have stopped being the barrier they once were.

o On the other hand, customers are much more concerned about whether they can get enough integration with their data and applications. Workday is confident it can supply these needs.

o Customers are also looking for the ability to use the application's configuration to provide some customization. Modern SaaS applications are designed to provide this.

I think that Workday's presence - and apparent success - in the marketplace are evidence that SaaS is growing up in both maturity and in the size of customer that will find it compelling. One should expect to see more companies join it in the business software marketplace over the next few years.

More Stories By Amy Wohl

Amy is a computer industry analyst who specializes in the commercialization of new technology. She has been observing, writing about, and commenting on the information technology industry for more than 30 years.

Her current specialties her SaaS, Cloud Computing, SOA, and the commercialization of new technologies. Her clients are software companies whom she assists with projects in new technologies, new concepts, and new products. She writes for both her clients and her own blogs and books.

In 2008, Mrs. Wohl published a book on SaaS and Cloud Computing.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@ThingsExpo Stories
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...