Microservices Expo Authors: Elizabeth White, Lori MacVittie, Derek Weeks, Liz McMillan, David Sprott

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.

@MicroservicesExpo Stories
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium 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. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
In case you haven’t heard, the new hotness in app architectures is serverless. Mainly restricted to cloud environments (Amazon Lambda, Google Cloud Functions, Microsoft Azure Functions) the general concept is that you don’t have to worry about anything but the small snippets of code (functions) you write to do something when something happens. That’s an event-driven model, by the way, that should be very familiar to anyone who has taken advantage of a programmable proxy to do app or API routing ...
Analysis of 25,000 applications reveals 6.8% of packages/components used included known defects. Organizations standardizing on components between 2 - 3 years of age can decrease defect rates substantially. Open source and third-party packages/components live at the heart of high velocity software development organizations. Today, an average of 106 packages/components comprise 80 - 90% of a modern application, yet few organizations have visibility into what components are used where.
SYS-CON Events announced today that Enzu 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
With emerging ideas, innovation, and talents, the lines between DevOps, release engineering, and even security are rapidly blurring. I invite you to sit down for a moment with Principle Consultant, J. Paul Reed, and listen to his take on what the intersection between these once individualized fields entails, and may even foreshadow.
In many organizations governance is still practiced by phase or stage gate peer review, and Agile projects are forced to accommodate, which leads to WaterScrumFall or worse. But governance criteria and policies are often very weak anyway, out of date or non-existent. Consequently governance is frequently a matter of opinion and experience, highly dependent upon the experience of individual reviewers. As we all know, a basic principle of Agile methods is delegation of responsibility, and ideally ...
Monitoring of Docker environments is challenging. Why? Because each container typically runs a single process, has its own environment, utilizes virtual networks, or has various methods of managing storage. Traditional monitoring solutions take metrics from each server and applications they run. These servers and applications running on them are typically very static, with very long uptimes. Docker deployments are different: a set of containers may run many applications, all sharing the resource...
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...
When we talk about the impact of BYOD and BYOA and the Internet of Things, we often focus on the impact on data center architectures. That's because there will be an increasing need for authentication, for access control, for security, for application delivery as the number of potential endpoints (clients, devices, things) increases. That means scale in the data center. What we gloss over, what we skip, is that before any of these "things" ever makes a request to access an application it had to...
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. 

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.
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
operations aren’t merging to become one discipline. Nor is operations simply going away. Rather, DevOps is leading software development and operations – together with other practices such as security – to collaborate and coexist with less overhead and conflict than in the past. In his session at @DevOpsSummit at 19th Cloud Expo, Gordon Haff, Red Hat Technology Evangelist, will discuss what modern operational practices look like in a world in which applications are more loosely coupled, are deve...
As we enter the final week before the 19th International Cloud Expo | @ThingsExpo in Santa Clara, CA, it's time for me to reflect on six big topics that will be important during the show. Hybrid Cloud This general-purpose term seems to provide a comfort zone for many enterprise IT managers. It sounds reassuring to be able to work with one of the major public-cloud providers like AWS or Microsoft Azure while still maintaining an on-site presence.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
DevOps is a term that comes full of controversy. A lot of people are on the bandwagon, while others are waiting for the term to jump the shark, and eventually go back to business as usual. Regardless of where you are along the specturm of loving or hating the term DevOps, one thing is certain. More and more people are using it to describe a system administrator who uses scripts, or tools like, Chef, Puppet or Ansible, in order to provision infrastructure. There is also usually an expectation of...
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 @...