Workday Strengths, Domain Expertise, and Key Differentiators
Workday is aiming to become the system of record for a large swath of users among its target customers and verticals. The vendor has been able to grow organically, while shoring up its presence in markets such as AI, Blockchain, Enterprise Performance Management and procurement. That results in a big wallet share among its key customers. Our Buyer Insights Master Database shows that not only Workday has been able to show a growing penetration of its Core HR and Financial Management among its customers, it has also experienced a steady increase in such important point solutions like talent acquisition.
Among the 1,000 largest companies in the United States, nearly a quarter of them are now running Workday Recruiting for talent acquisition, according to its regular survey of these enterprise companies. With 2018 purchase of Adaptive Insights, a provider of cloud-based business planning and financial modeling tools, now under the Workday umbrella, there are an additional 5,500 organizations worldwide utilizing Workday for planning and plenty of other options to standardize on the Workday platform.
Workday Recent Developments
In its 3QFY22, Workday expanded its workforce management offerings with Workday Scheduling and Labor Optimization, an intelligent, worker-first scheduling solution that matches labor demands with worker preferences so that organizations can better optimize shift schedules and empower frontline workers with flexibility and control for when and how they work. In Learning and Development, nearly 1,000 organizations are using Workday Skills Cloud to effectively hire, engage, and retain their workforce. Workday also announced a new packaged solution – skills foundation – to help customers accelerate and evolve their skills-based people strategies.
In October 2020, Workday released its new Workday Accounting Center and machine-learning-driven predictive forecasts for Workday Adaptive Planning. Workday Accounting Center enables customers to manage operational and financial data from multiple sources with a single point of control enterprise-wide. By enriching operational data with meaningful and strategic attributes, organizations can turn data into accounting and insights faster, eliminating the need for finance teams to rely solely on information technology (IT) to maintain accounting rules.
Workday customers can use Workday People Analytics with Workday Human Capital Management (HCM) to maintain business continuity and solve challenges created by the pandemic. In addition of Workday People Analytics, Workday also published two new solutions (Workday Help and Workday Journeys) for Workday People Experience, a machine learning-driven employee experience, to further help organizations manage the complexities associated with our new world of work.
Workday Help is a comprehensive HR service delivery application that provides more intuitive case management, and Workday Journeys enables organizations to create personalized experiences that guide workers through critical moments and transitions, such as onboarding or becoming a manager. Both products will help employers better engage and support employees while making work more personal and productive for their people.
Workday Mergers and Acquisitions (M&A) Activities
In November 2021, Workday acquired VNDLY, which focuses on external workforce management and vendor management solution(VMS), for $510 million. In the HCM apps market, Workday also acquired PeakON ApS, an employee success platform that converts feedback into actionable insights for $700 million, in early 2021.
In September 2021 Workday acquired Zimit to shore up its financial apps. With Zimit, Workday will provide organizations with a comprehensive quote-to-cash process automation offering for services industries, including communications, media, technology, and professional and business services. The combination will provide organizations with increased visibility across the entire revenue cycle and will help further expand the Workday product portfolio that is enabling the office of the CFO to digitally transform. To help meet the demand and what’s required of them, organizations need CPQ technologies that help speed up the process and provide greater visibility. As one of the first commercial solutions specifically developed for services CPQ, Zimit expedites the creation of timely and accurate quotes and proposals, helping reduce the time to quote from days to minutes.
In January 2021, Workday acquired data-driven human resources (HR) startup Peakon in an all-cash deal worth $700 million. Peakon is a SaaS platform that helps businesses better engage with their employees and establish sentiment through ongoing surveys. It’s very much a data-driven platform, one that generates real-time insights to help businesses reduce churn and retain their top workers.
Workday Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Workday applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Workday and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Workday Financial Management, Workday Human Capital Management, Workday Prism Analytics, Workday Professional Services Automation, Workday Student, customers.
Workday Overview
Ownership: - WDAY : NASDAQ
Number of Employees: 15200
Functional Markets: EPM, ERP Financial, HCM, PPM, Procurement, SPM, PaaS,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K244, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
Workday Key Enterprise and Cloud Applications
Workday Financial Management, Workday Human Capital Management, Workday Prism Analytics, Workday Professional Services Automation, Workday Student,
Workday Revenues, $M:
| Type/Year | 2020 | 2021 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Workday Revenue Breakdown By Type, $M:
| Type | License | Prof. Services | Hardware | Support & Maintenance | SaaS | PaaS | IaaS | Other (Non Enterprise Application Revenues) | Total |
|---|---|---|---|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | 100% |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
Workday Enterprise Applications Revenues By Functional Markets, $M:
Workday Enterprise Applications Revenues By Verticals, $M:
Workday Revenues By Region, $M
| Region | % of Total Revenues | 2021 Total Revenues, $M | 2021 Enterprise Applications Revenues, $M | 2021 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Workday Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Workday Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Workday Customers
No. of Workday Customers: 9500
No. of Workday Enterprise Applications Customers: 9500
No. of Workday Cloud Customers: 9500
No. of Workday Cloud Subscribers: 60 million
Workday Customer Count: Workday HCM - 3825+, Workday Projects - 1275+, Workday Expenses - 1400+, Workday Financial Management - 1200+, Workday Procurement - 1050+ (including Scout RFP customers), Workday Inventory - 250+, Workday Grants - 250+, Workday Prism Analytics - 825+, Workday Adaptive Planning - 5800+, Workday has more than 9,500+ customers, more than 70% of which are live and in production, ranging from mid-sized businesses to more than 50% of the Fortune 500 and 70%+ of the Fortune 50.
Workday Financial Management customers include 21st Century Fox, Airbnb, Aon, Brown & Brown, Caliber Holdings, Care.com, City and County of Denver, Conde Nast, Continental Casualty, Cushman & Wakefield, Denny's, First Financial Bank, Giant Tiger, J.B. Hunt, Life Time Fitness, Louisiana State University, Netflix, New York Public Library, The Ohio State University, Panera Bread, Sacramento Kings, Salmat, Sanford Health, Sky Betting & Gaming, TripAdvisor, Unum, WeWork and Yale.
Workday Human Capital Management customers include Amazon, Airbus, Bank of America, BP, Centrica, Citigroup, Dell, Deutsche Bank, Fast Retailing, Hitachi, Home Depot, HP Inc. and HP Enterprise, Humana, IBM, Kohl's, Lloyds Bank, Massachusetts Mutual Life Insurance, MGM Resorts, Morgan Stanley, Nissan, Pfizer, PNC Bank, Primark, Rolls-Royce, Qantas Airlines, Sanofi, Shell, Siemens, Target, Unilever and many others.
Workday Market Opportunities, M&A and Geo Expansions
The recent acquisitions of Vndly and Zimit underscore Workday's desire to expand into contingent labor management and salesforce-centric applications. It's fair to assume that the Workday suite will extend from the backoffice to customer-facing solutions.
The onset of the worldwide COVID-19 pandemic, and the related explosion in work-from-home (WFH) personnel, presented a new – and rapidly growing – opportunity for Workday. Its revenue growth shows that this alignment with WFH is paying off, as the company’s revenues grew 20% year over year (YoY), as reported in fall 2021. Key structural factors supporting this growth include: Workday’s flagship HCM and Financials software applications are making inroads into some of the biggest companies as their de-facto suite of choice.
After becoming a popular Cloud HCM choice among major companies with tens of thousands of employees, Workday boosts its presence in the midmarket space. Working with a long list of deployment partners like Deloitte has started delivering fixed-fee and preconfigured packages for midmarket customers in the United States. The template approach expected to fuel the customer count of Workday, perhaps doubling or tripling it over the next few years as it rolls out its midmarket push in other countries.
In May 2020, Workday made two strategic partnerships with Microsoft and Salesforce. Workday integrated with Salesforce to enable joint customers to forge ahead in their plans to safely return to work. The companies will offer integrated solutions between Workday, the source of truth for real-time worker information and skills insights for today’s dynamic workforce, and Salesforce’s Work.com, an all-new suite of applications and advisory resources to help business and community leaders around the world reopen safely. The pairing will equip joint customers with rich, timely insights and tools to help them manage their workforce as businesses move further into a reopening strategy in the face of COVID-19.
Microsoft made a strategic partnership with Workday prioritizing enterprise planning in the cloud and expanding the business solutions customers can use to better optimize their everyday work. Through this partnership, Workday customers will also be able to run Workday Adaptive Planning on the Microsoft Azure cloud. Further, Microsoft will adopt Workday Adaptive Planning for its global finance teams for planning, budgeting, and forecasting to help accelerate decision making. The companies also unveiled new integrations between Workday’s suite of applications and Microsoft Teams and Azure Active Directory that will enable customers to simplify day-to-day tasks, foster collaboration, increase productivity, and enhance security.
After winning deals from a slew of customers in the education and services sectors, Workday expected to move into asset-intensive industries. Earlier, Workday announced Workday Inventory along with enhancements to Workday Procurement, to address the supply chain management needs of healthcare providers. As its customer mix becomes more diverse, global support was a big priority for Workday in 2019.
The same applies to continuous innovation in the user interface, gearing up to save time and money for its customers that are committed to making easy-to-use Workday applications available to a massive base of employees and key constituents across different devices and touchpoints.
Workday Risks and Challenges
As Workday expands its footprint, the risk lies in which market segment it plans to build out and where to backfill. The acquisition of Scout RFP may well foreshadow Workday's attempts to leapfrog competitors like Coupa, GEP, and others in the procurement space. Workday's ability to wrest control of the back-end financial management and processes is strengthening with a growing installed base even though most customers still consider Workday a serious HR apps contender, not full-blown enterprise applications play. Its recent acquisitions of Vndly and Zimit will give Workday's additional prove points to change that perception.
The question is whether the expanded portfolio is changing the DNA of the company, which for the most part of its history relied heavily on a few moving parts to drive a common data model as well as unified user interface. Not resorting to rampant acquisitions was a given at Workday. It's fair to say that the mission of consuming Workday with its original packaging and flavor has given way to a decidedly ambitious agenda of catering to multiple consitituents with more apps.
Workday Ecosystem, Partners, Resellers and SI
Workday has certified more than 6,000 partner consultants, growing its field expertise to meet customer demand. Because of some gaps within the Workday portfolio, partners like NGAhr, now part of Alight, have been able to shore up services and product offerings especially when it comes to payroll support for dozens of countries that Workday does not currently support with its offerings. Workday will also inherit VNDLY’s MSP relationships.
The Workday ecosystem is getting a helping hand from its VC arm. For example, Beamery, a talent engagement platform, announced it has received a strategic investment from Workday Ventures and it will join the Workday Software Partner Program. In addition, Beamery also announced that the Workday Talent Acquisition team has selected Beamery products that help further its efforts to identify early-stage, passive candidates and are complementary to Workday Human Capital Management HCM, including Beamery Talent Customer Relationship Management CRM, Beamery Talent Marketing, and Beamery Pages.
The acquisition of Scout RFT, which previously was funded through Workday Ventures, underscores its VC arm is both an incubator and a talent producer that feeds its product pipeline. Workday primarily sells direct, but its partner ecosystem is becoming more robust than ever. Accenture, CSC, Deloitte, NGA Human Resources, OneSource Virtual, and PWC have invested heavily in their Workday practice.
Earlier Workday expanded its partnership with ADP to provide multinational organizations with a seamless and unified global payroll experience. The partnership plans to leverage the next level in integration technology to unite Workday Human Capital Management (HCM) and ADP Global Payroll in single user experience within Workday, enabling multinational organizations to more effectively manage their global workforce, efficiently process payroll, and maximize business growth. Other partners include Appirio(now Wipro), AXIA(acquired by KMPG), Balkon(acquired by PwC), CedarCrestone(now Sierra-Ceder), Cloudator, Collaborative Solutions, CPSG, DayNIne(now Accenture), everBe, IBM, Jeitosa Group International(acquired by Mercer), Kainos, Kloud, KPMG, Meteorix(acquired by IBM), OmniPoint (acquired by Aon Hewitt), and Towers Watson (now WillisTowersWatson).
Workday Cloud Infrastructure Insights
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
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