The suspense is over. Almost five months after Kronos and Ultimate Software merged to create a $3 billion HCM application powerhouse, the combined company has a new name: UKG as in Ultimate Kronos Group with Our Purpose is People as its tagline.

Ultimate Software and Kronos usher in UKG with Aron Ain (top right) as CEO
Ultimate Software and Kronos usher in UKG with Aron Ain (top right) as CEO

UKG is short and sweet. The only concern is whether some may confuse it with USG, the drywall manufacturer. However, UKG is expected to invest heavily in its new branding push in order to raise the awareness of the umbrella group that unites a plethora of HR, payroll and workforce management applications purposely built for people and verticals.

UKG will start promoting the new name through its sports sponsorship programs like the scheduled appearance of tennis star Novak Djokovic, the current favorite to win the US Open by wearing the UKG logo during the September 2020 tournament.

Acronyms are rare in enterprise software. Among the more than 1,600 vendors featured in our next Cloud Top 500 report, about a dozen or so use acronyms in their names notably ADP, CDK, CGI, FIS, IBM, NCR, SAP, and SAS. Even JDA, the long-time supply chain apps vendor, has recently changed its name to Blue Yonder.

Jody Kaminsky, Chief Marketing Officer of UKG, said after the completion of the merger in April, the company spent months surveying its employees, customers, industry analysts and other key stakeholders to identify and select the new name while incorporating their input for the rebranding strategy.

What UKG aims is to excel in its core areas from Core HR, payroll, and HR Service Delivery in midmarket to workforce management for companies of all sizes, while placing equal emphasis on its global expansion plans.

This is what the UKG press release has to say about its mission:

“UKG will connect employees to their work and their colleagues, develop strong leaders and teams, provide insights that promote better business outcomes, and help organizations develop people-centered HR programs and effective operations—demonstrating that, when companies focus on caring for their people, they will see more engaged employees that yield positive long-term results.”

Our take is that the emphasis should be on the G, which could become a significant force in buying, integrating and scaling out many best-of-breed and suite products to form an expanded network of HCM, payroll, workforce management, talent acquisition and perhaps non-HR applications for the global audience.

Over the next few months, UKG will be busy harnessing its two main operations in Lowell, MA, and Weston, FL, in order to build the momentum needed to rally behind the unifying brand, not a trivial task as most of its 12,000+ employees are scattered all over the world as they continue to work remotely amid the pandemic.

Another challenge is to formulate a cohesive strategy across sales, development and customer success in order to out maneuver SAP and Workday in a tight three-horse race to become the dominant HCM applications vendors. SAP is operating under a new management structure led by Christian Klein as the recently-appointed sole CEO and Workday has been expanding heavily into procurement, enterprise performance management through the acquisitions of Scout RFP and Adaptive Insights after establishing a loyal following for its Cloud HCM applications.

Because the $22-billion merger took place in early 2020, both Ultimate Software and Kronos were still counted separately as they trailed behind SAP and Workday in the worldwide HCM applications market in 2019. Our current estimate is that all three(UKG, SAP and Workday) are on track to post more than $2 billion each  in HCM applications revenues in 2020 with SAP maintaining a slight lead because of heavy contributions from Fieldglass, which is expected to experience considerable growth for its contingent labor management applications this year. With the workplace turning virtual and workforce requirements becoming more fungible, employers are expected to rely on contractors and gig workers even more in 2020.

Still, the pandemic and economic downturn will pose significant risks to all three given their exposure to a range of customers in struggling verticals such as leisure, hospitality, retail, transportation, travel, and even healthcare that are being upended by the public health crisis.

What works to UKG’s advantage is its laser focus on HCM, something that is becoming more critical and perhaps fluid than ever given remote work will be here to stay, unemployment rates in the United States and elsewhere continue to stay elevated and shortages of skilled workers remain the top priority for many employers.

If UKG succeeds in helping its installed base of 23,000+ customers tackle any of the above knotty issues in 2020 by touting and fulfilling its mission, its ultimate win as the No. 1 HCM applications vendor may well be within reach.

Partial List of UKG Customers

Customer Industry Empl. Revenue Country Vendor New Product
AdventHealth Ocala Healthcare 2500 $384.0M United States Ultimate Software UltiPro HCM
Air Canada Jazz Transportation 4400 $1.67B Canada Ultimate Software UltiPro HCM
Air Methods Corp Aerospace and Defense 4554 $10.85B United States Ultimate Software UltiPro HCM
AMN Healthcare Professional Services 2920 $213.6M United States Ultimate Software UltiPro HCM
Crescent Hotels and Resorts Leisure and Hospitality 6435 $720.0M United States Ultimate Software UltiPro HCM
CRISTA Ministries Non Profit 1001 $112.0M United States Ultimate Software UltiPro HCM
DeVry Education Group Education 10136 $1.85B United States Ultimate Software UltiPro HCM
Dex Media Professional Services 3000 $1.19B United States Ultimate Software UltiPro HCM
Earls Restaurants Retail 7000 $300.0M Canada Ultimate Software UltiPro HCM
Federated Co-operatives Limited Manufacturing 23000 $8.15B Canada Ultimate Software UltiPro HCM
Festival Foods Retail 7500 $700.0M United States Ultimate Software UltiPro HCM
Hot Topic, Inc. Retail 10000 $230.0M United States Ultimate Software UltiPro HCM
Islands Restaurants Retail 4100 $90.0M United States Ultimate Software UltiPro HCM
Mediacom Communications Corporation Media 5000 $1.62B United States Ultimate Software UltiPro HCM
MISTRAS Group, Inc. Professional Services 5600 $719.0M United States Ultimate Software UltiPro HCM
MKS Instruments Inc Manufacturing 5500 $1.90B United States Ultimate Software UltiPro HCM
Movement Mortgage, LLC Banking and Financial Services 4000 $580.0M United States Ultimate Software UltiPro HCM
Peet’s Coffee Retail 5000 $800.0M United States Ultimate Software UltiPro HCM
Pernod Ricard USA Consumer Packaged Goods 19000 $10.00B United States Ultimate Software UltiPro HCM
Praxair, Inc. Utilities 26461 $11.70B United States Ultimate Software UltiPro HCM
Schlumberger Oil, Gas and Chemicals 103000 $32.92B United States Ultimate Software UltiPro HCM
AdventHealth Ocala Healthcare 25172 $384.0M United States Ultimate Software UltiPro HCM
YMCA of San Diego County Non Profit 6094 $15.5M United States Ultimate Software UltiPro HCM
Itochu Distribution 119796 $106.46B Japan Ultimate Software UltiPro Recruiting
Plains GP Holdings, L.P. Oil, Gas and Chemicals 4900 $34.06B United States Ultimate Software UltiPro Recruiting
Core-Mark Holding Company, Inc. Distribution 8087 $16.40B United States Ultimate Software UltiPro Recruiting
ALDI USA Retail 30000 $13.50B United States Ultimate Software UltiPro Recruiting
Community Health Systems, Inc. Healthcare 63000 $13.21B United States Ultimate Software UltiPro Recruiting
Bunzl UK and Ireland Distribution 19000 $11.49B United Kingdom Ultimate Software UltiPro Recruiting
Subway Retail 65178 $10.41B United States Ultimate Software UltiPro Recruiting
Thor Industries, Inc. Manufacturing 17500 $8.30B United States Ultimate Software UltiPro Recruiting
EMCOR Group, Inc. Construction and Real Estate 33000 $8.13B United States Ultimate Software UltiPro Recruiting
Roper Technologies, Inc. (Deltek) Manufacturing 15611 $5.19B United States Ultimate Software UltiPro Recruiting
Avon Products, Inc. Consumer Packaged Goods 25000 $5.00B United States Ultimate Software UltiPro Recruiting
Bloomin’ Brands, Inc. Retail 93000 $4.13B United States Ultimate Software UltiPro Recruiting
Amgen Inc. Life Sciences 23400 $2.34B United States Ultimate Software UltiPro Recruiting
NFI Industries Distribution 12600 $2.00B United States Ultimate Software UltiPro Recruiting
Rollins, Inc. Professional Services 13000 $1.82B United States Ultimate Software UltiPro Recruiting
Walmart Inc. Retail 2200000 $523.96B United States Kronos Kronos Workforce Central
Amazon.com, Inc. Retail 840400 $280.52B United States Kronos Kronos Workforce Central
G4S plc Professional Services 558000 $9.86B United Kingdom Kronos Kronos Workforce Central
Tesco Retail 454419 $81.91B United Kingdom Kronos Kronos Workforce Central
The Kroger Company Retail 435000 $122.29B United States Kronos Kronos Workforce Central
The Home Depot, Inc. Professional Services 415700 $110.23B United States Kronos Kronos Workforce Central
Steward Health Care Healthcare 400000 $8.00B United States Kronos Kronos Workforce Central
Siemens Manufacturing 385000 $99.33B Germany Kronos Kronos Workforce Central
DHL Transportation 380000 $10.00B Germany Kronos Kronos Workforce Central
Royal Ahold Delhaize N.V. Retail 372000 $70.35B Netherlands Kronos Kronos Workforce Central
Securitas Security Services USA, Inc. Professional Services 370000 $6.30B United States Kronos Kronos Workforce Central
Target Corporation Retail 360000 $75.36B United States Kronos Kronos Workforce Central
Starbucks Corporation Retail 346000 $26.51B United States Kronos Kronos Workforce Central
Walgreens Retail 342000 $136.90B United States Kronos Kronos Workforce Central
UnitedHealth Group Incorporated Healthcare 325000 $240.27B United States Kronos Kronos Workforce Central
FedEx Corporation Transportation 309000 $69.69B United States Kronos Kronos Workforce Central
Kaiser Permanente Healthcare 304874 $79.70B United States Kronos Kronos Workforce Central
Nestlé Consumer Packaged Goods 291000 $98.26B Switzerland Kronos Kronos Workforce Central
CVS Health Corporation Life Sciences 290000 $256.78B United States Kronos Kronos Workforce Central
The TJX Companies, Inc. Retail 286000 $41.72B United States Kronos Kronos Workforce Central
PepsiCo, Inc. Manufacturing 267000 $67.16B United States Kronos Kronos Workforce Central
Wells Fargo & Company Banking and Financial Services 266000 $85.06B United States Kronos Kronos Workforce Central
JPMorgan Chase & Co. Banking and Financial Services 256710 $115.63B United States Kronos Kronos Workforce Central
AT&T Inc. Communications 244000 $181.19B United States Kronos Kronos Workforce Central
U.S. Department of Homeland Security Government 240000 $51.67B United States Kronos Kronos Workforce Central
HSBC Holdings Banking and Financial Services 235047 $68.07B United Kingdom Kronos Kronos Workforce Central
Delta Air Lines, Inc. Transportation 91000 $47.01B United States Kronos Kronos Workforce Dimensions
Emerson Electric Co. Manufacturing 88000 $18.37B United States Kronos Kronos Workforce Dimensions
Chipotle Mexican Grill, Inc. Consumer Packaged Goods 85000 $558.6M United States Kronos Kronos Workforce Dimensions
Australia Post Professional Services 80000 $4.79B Australia Kronos Kronos Workforce Dimensions
Meijer Inc. Retail 80000 $17.80B United States Kronos Kronos Workforce Dimensions
Delaware North Leisure and Hospitality 55000 $3.20B United States Kronos Kronos Workforce Dimensions
TeleTech Professional Services 50000 $1.51B United States Kronos Kronos Workforce Dimensions
Cardinal Health, Inc. Healthcare 49500 $145.53B United States Kronos Kronos Workforce Dimensions
Tesla, Inc. Automotive 48016 $24.58B United States Kronos Kronos Workforce Dimensions
The Allstate Corporation Insurance 45780 $44.68B United States Kronos Kronos Workforce Dimensions
CHRISTUS Health Healthcare 45000 $5.40B United States Kronos Kronos Workforce Dimensions
Brookdale Senior Living Inc. Healthcare 43200 $4.53B United States Kronos Kronos Workforce Dimensions
Carnival Leisure and Hospitality 40000 $10.00B United States Kronos Kronos Workforce Dimensions
Menzies Aviation Transportation 36000 $1.54B United Kingdom Kronos Kronos Workforce Dimensions
Praxair, Inc. Utilities 26461 $11.70B United States Kronos Kronos Workforce Dimensions
L Brands, Inc. Retail 25500 $13.24B United States Kronos Kronos Workforce Dimensions
Alaska Air Group, Inc. Aerospace and Defense 23376 $6.55B United States Kronos Kronos Workforce Dimensions
Rona, Inc. Retail 22000 $3.31B Canada Kronos Kronos Workforce Dimensions
DAL Global Services Professional Services 22000 $5.00B United States Kronos Kronos Workforce Dimensions
The University of Texas MD Anderson Cancer Center Healthcare 21700 $5.90B United States Kronos Kronos Workforce Dimensions
Alcon Life Sciences 20000 $7.40B Switzerland Kronos Kronos Workforce Dimensions
Alsco Inc. Professional Services 20000 $7.00B United States Kronos Kronos Workforce Dimensions
Healius Limited Healthcare 13000 $1.80B Australia Kronos Kronos Workforce Dimensions
Dairy Farm Group Retail 230000 $11.19B Hong Kong Kronos Kronos Workforce Central
AmeriQual Group, LLC Consumer Packaged Goods 900 $313.0M United States Kronos Kronos Workforce Ready
Armour Eckrich Meats Llc Consumer Packaged Goods 250 $30.0M United States Kronos Kronos Workforce Ready
Borg Manufacturing Manufacturing 1800 $220.0M Australia Kronos Kronos Workforce Ready
City of Manitowoc Government 373 $126.0M United States Kronos Kronos Workforce Ready
Farmer Brothers Consumer Packaged Goods 1521 $595.0M United States Kronos Kronos Workforce Ready
University of California Irvine Education 25827 $510.0M United States Kronos Kronos Workforce TeleStaff
City of Boston Government 22000 $3.15B United States Kronos Kronos Workforce TeleStaff
City of Edmonton Government 15115 $3.11B Canada Kronos Kronos Workforce TeleStaff
City of San Diego Government 11579 $160.0M United States Kronos Kronos Workforce TeleStaff
Chesterfield County, VA Government 11155 $720.0M United States Kronos Kronos Workforce TeleStaff
Fresno County Government 8105 $155.0M United States Kronos Kronos Workforce TeleStaff

Source: Apps Run The World, August 2020