Kronos Incorporated Strengths, Domain Expertise, and Key Differentiators
Kronos, having successfully transitioned to a pure software-as-a-service (SaaS) provider, again delivered exceptional growth in the Kronos Cloud and ended the year with very strong subscription growth in the fourth quarter. For fiscal 2019 (end Sept 30), Kronos stated it crossed $1 billion of annual recurring revenue, and over $1.43B overall.
Kronos strengthened its position as the worldwide leader in workforce management with all-time highs for product bookings in most key vertical segments and geographic regions while the company deepened industry expertise worldwide. Subscription revenue was up 30%, fueled by Workforce Dimensions adoption and an all-time best year for human capital management (HCM) deals.
Kronos had another record year overall for $1 million+ wins, with new fourth-quarter customer deals including: one of the world’s largest online retailers; a major package shipping and deliver company serving the U.S. and Canada; a public school district in the U.S. serving more than 40,000 students; and one of the largest law enforcement agencies in the U.S.
Building on the continued success of its global partner infrastructure network, Kronos announced a new cloud collaboration relationship with Oracle HCM.
Furthermore, Kronos and NGA Human Resources formed a strategic global alliance to simplify the delivery of workforce management, HR, and payroll services to organizations with complex global workforces.
Kronos Incorporated Recent Developments
In January 2019, Kronos made a partnership agreement with SAP to resell Workforce Dimensions across its worldwide customer base under the name “SAP Time Management by Kronos. SAP has selected Workforce Dimensions as its workforce management solution for customers with complex scheduling, time and attendance, absence management, labor activities, and workforce analytics requirements. The integrated solution provides SAP customers with best-in-class workforce management capabilities that extend and complement the SAP SuccessFactors HCM Suite. Since the deal was signed in January 2019, Kronos has sold Workforce Dimensions to three SAP customers outside the United States, enabling the vendor to expand into countries where it does not have a direct presence.
In November 2018, Kronos introduced Workforce Dimensions HCM, extending the next-generation Workforce Dimensions experience – including fully responsive design, embedded analytics, the intelligence of AIMEE, and the extensibility of the Kronos D5 platform – across the entire employee lifecycle, to help organizations better attract, engage, and retain talent. Built on the future-ready Kronos D5 platform, Workforce Dimensions HCM unifies talent acquisition and onboarding, core human resources, talent and performance management, workforce management, and payroll in a single next-generation solution.
In June 2018, Kronos launched of Kronos Workforce Ready in France, introducing the award-winning cloud solution to its ninth international market. Kronos will focus its Workforce Ready offering in France on scheduling, time and attendance, and accruals management to organizations with 100 to 2,500 employees in the retail and hospitality, manufacturing, and logistics industries. Workforce Ready scales to support enterprise-sized organizations as well.
In April 2018, Kronos acquired Advanced Payroll Systems enabling the company to offer complete end-to-end tax filing, check printing, garnishments, and reporting service for its Workforce Dimensions and Workforce Ready cloud Payroll customers.
Kronos Incorporated Mergers and acquisitions (M&A) Activities
In October 2019, Kronos acquired Optimum Solutions Inc, expanding its reach and client base to over 600 organizations. Kronos will continue to support all acquired customers through a dedicated Optimum team.
Kronos Incorporated Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Kronos Incorporated 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 Kronos Incorporated 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 Kronos SaaShr, Kronos Workforce Central, Kronos Workforce Ready, customers.
Kronos Incorporated Overview
Ownership: - x
Number of Employees: 6000
Functional Market: Absence and Leave Management, Workforce Analytics, Time Clock (Hardware), Scheduling, Task Management, Time and Attendance, Core HR, Payroll, Compliance, Onboarding, Recruiting, Compensation Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Manufacturing, Non Profit, Oil and Gas, Professional Services, Retail, Transportation, Utility,
Kronos Incorporated Key Cloud and HCM Applications
Kronos SaaShr, Kronos Workforce Central, Kronos Workforce Ready,
Kronos Incorporated HCM and Cloud HCM Applications Revenues, $M:
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|Cloud HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** 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.
Kronos Incorporated Revenue Breakdown by Type:
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Kronos Incorporated HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2018 HCM Revenues, By Sub-Functional Markets, $M
Kronos Incorporated HCM Applications Revenues By Verticals, $M:
Kronos Incorporated Total and HCM Applications Revenues by Region:
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Kronos Incorporated Direct vs Indirect sales
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Kronos Incorporated Customers - Breakdown by Geo, Size, Vertical and Product
No. of Kronos Incorporated Customers: 39000
No. of Kronos Incorporated HCM Applications Customers: 39000
No. of Kronos Incorporated Cloud HCM Customers: 33000
No. of Kronos Incorporated Cloud HCM Subscribers: 40 million
In 2019, Kronos reported more than 33,000 organizations around the globe leveraging a Kronos Cloud solution. With overall customer retention across all suites remaining very strong throughout the year, Kronos had another record year converting existing on-premise customers to a SaaS solution, as hundreds of existing on-premise customers migrated to the Kronos Cloud.
Workforce Dimensions crossed the 600 customer mark, a quarter of which are net new to Kronos. The pace of conversions of long-standing, on-premise customers migrating to SaaS continues to rapidly increase with another record year, as hundreds of existing Kronos on-premise customers migrated to SaaS.
In the fourth quarter of Fiscal 2019, Kronos signed agreements with organizations around the world, including: Atlanta Public Schools, one of the largest school districts in Georgia serving 52,000 students across 18 schools, organized into nine K-12 clusters with 58 neighborhood schools, six partner schools, 18 charter schools, two citywide single-gender academies, and three alternative programs; Bond University, Australia’s #1 university for the student experience; City of Southlake, located near Dallas, Texas with a population of 27,000 residents; Community College of Allegheny County, a nationally renowned community college serving 43,000+ students each year; DART, a public transit agency serving Dallas, Texas and 12 surrounding North Texas cities with a multi-modal network of buses, light rail, commuter rail, and paratransit services for more than 200,000 passengers each day; Fishers Service Ltd., a U.K. provider of commercial laundry services; The Distribution Center for Bestseller, a famous Denmark fashion brand with 8,000 stores in China; Healius, one of Australia’s leading healthcare companies; Lifespan Corporation, Rhode Island’s largest health system and largest employer with a network of nationally recognized hospitals; Luxottica, a leader in the design, manufacture, and distribution of fashion, luxury, and sports eyewear; Marriott Middle East, part of the largest hotel operator in the world, encompassing a portfolio of more than 7,000 properties globally; Metro Mechanical Services Ltd., a U.K. commercial drainage specialist; Mingara Recreation Club, the destination for Australia’s Central Coast restaurants and bars, entertainment, promotions, kids play areas, sport and fitness facilities, corporate events, celebrations, and community involvement; Moffitt Cancer Center, a top-10 cancer hospital and National Cancer Institute Comprehensive Cancer Center, pioneering advances such as CAR T cell therapy; Monash Health, Victoria, Australia’s largest public health service; National Timber Group, the largest independent added-value timber distribution and processing group in the U.K. created through the acquisitions of market-leading brands Arnold Laver, North Yorkshire Timber, Rembrand, and Thornbridge; UTMB Health, an academic medical center and comprehensive health system of hospitals and a network of clinics; and Whistl U.K.Ltd., a leading delivery management company, Mackenzie Health, Inframark, and Modell’s.
Kronos Incorporated Market Opportunities, M&A and Geo Expansions
Kronos invested a record $200 million on R&D in Fiscal 2019 to deliver next-generation enhancements, features, and functionality. Workforce Dimensions saw the launch of AI-powered scheduled with forecasting, enhancements in HR, payroll, talent and benefits, deeper integrations into strategic products such as Telestaff and healthcare extensions, and other vertical capabilities. It also added a scheduling chatbot in Workplace by Facebook and integration with Microsoft Teams, Microsoft Outlook, and Microsoft Power BI. Workforce Ready saw an overhaul of its user experience, the launch of a new mobile app, deeper analytics, and live chat support. Workforce Central investments continue with focus on global compliance, security and user experience.
Kronos Incorporated Risks and Challenges
Kronos’ transition to the Cloud will entail a drop in its license and maintenance revenues. However, a unique challenge for Kronos could lie in its long-standing clients that have been running its on-premise applications along with a smattering of time-clock hardware in different parts of their operations. Because of the complexity of a large-scale Workforce Central implementation that could involve more than 100,000 workers, Kronos’ biggest customers are still sticking to the on-premise version and the vendor expects on-premise products to represent some portion of its revenues for at least another five to 10 years.
Kronos Incorporated Ecosystem, Partners, Resellers and SI
Kronos has direct sales teams across major markets including North America, UK, Europe, Australia, China, and India. In order to extend its reach across these markets, and emerging markets such as South East Asia, Middle East, and Africa it is very focused on building out its channel ecosystem. This strategy is a combination of signing agreements with local sSolution providers who can sell and implement Kronos, for example Health Matrix who are a provider of technology solutions to the healthcare sector in the Middle East, and also Bytes Technology Group who sell across all industry sectors in Africa and the Middle East.
Expanding its ecosystem by signing new reseller partners such as Valueteam in Brazil, Hyperlink in the Middle East, NGA in Europe and Group Seidor in Spain and Portugal to go after untapped opportunities in different regions.
Kronos also struck a deal with Qimpro to drive workforce transformation in India. Kronos further extended its reach into the Chinese market by forming a reseller agreement with Capgemini. In addition to these reseller based partnerships Kronos direct sales are working extensively with Global Consulting companies such as Accenture, Deloitte, Cap Gemini, PWC, E&Y, IBM, and Cognizant in all sectors.
During 2019, Kronos continued the growth of the Workforce Dimensions Technology Partner Network, expanding its innovation ecosystem with the introduction of new partner integrations and solution extensions that help customers solve specific business challenges across a variety of industries.
New healthcare solution providers joining the Workforce Dimensions Technology Partner Network include ConnectRN, a modern, digital solution to work and fill open per-diem healthcare shifts; Healthcare IT Leaders, a KLAS-rated health IT consulting and workforce solutions firm; PayActiv, a leader in earned wage access for employees; and ShiftMed, an on-demand staffing platform for skilled nursing facilities and hospitals.
Kronos Incorporated Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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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).
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