Welcome!

Containers Expo Blog Authors: Sujoy Sen, JP Morgenthal, Elizabeth White, Liz McMillan, Stefan Dietrich

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
The IoTs 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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...