Why are IBM, Oracle and SAP optimistic about "Human Resource Management Cloud"?

Workday has 325 cash corporate customers, with an annual income of more than $230 million (awesome! On average, each customer gets $ 70W. This enterprise has shown its majestic momentum (compared with the same period last year, the income growth is close to 100%).

One third of this company's income comes from professional services. Workday fully demonstrated how his "Apple Strategy" (providing a highly integrated and somewhat closed system) made enterprises spend a lot of money on enterprise application integration services. The implementation and deployment of these systems are very complicated (a customer told me that it took them several years to fully integrate the company's applications). Workday is now working closely with companies such as Deloitte to build a strong eco-partnership system for implementation and delivery.

Workday was originally planned as a cloud-based human resource management application (HRMS), and now it has developed into an ERP solution based on cloud computing technology. However, at present, Workday has no powerful data mining and analysis products (such products have powerful report functions but are not really open data analysis solutions), and Workday is losing the application of talent management modules such as recruitment and training. When customers quickly evaluate it, these applications are the most attractive in the whole product.

In many ways, Workday "awakens" the whole ERP market and helps us to see that these systems can be re-conceived as "participating systems" rather than just "recording systems".

There are many reasons why we become Workday fans, but with the company's public offering (IPO), the competitive space has become very crowded (we will release a detailed analysis of Workday and the current market situation in the next few months, so please pay attention to these upcoming reports).

The ERP market of cloud computing is huge (billions), and we have no reason to doubt that Workday will not become a billion-dollar company in the next 5-7 years.

The situation in Oracle Bone Inscriptions

It can be said that Oracle Bone Inscriptions, SAP and other manufacturers will not do nothing. This week, we were deeply impressed by Oracle Bone Inscriptions's progress in human resource management system and cloud computing ERP.

First of all, Oracle Bone Inscriptions Convergence HCM is now online, and we expect that there will be more than 65,438+000 online customers in Oracle Bone Inscriptions. In the past 18 months, this is an amazing development speed, and Oracle seems to win 30-40 transactions every quarter. Fusion has many functions that Workday does not have (predictive analysis, recruitment, training, social networking, etc.), and Oracle Fusion HCM coexists with existing PeopleSoft and Oracle EBS systems. (Workday is almost a solution of "elimination and replacement", that is to say, if enterprises use Workday, they must eliminate or replace the ERP or HCM systems currently used. )

Fusion's user interface is not as exciting as Workday's (but it is being optimized), and Oracle is not very enthusiastic about promoting its "object-oriented database". On the other hand, Oracle Bone Inscriptions's products are based on traditional relational databases, and we all know how to use and integrate them. Workday's database is proprietary, and you can only access the parts they decide to make public.

Oracle Bone Inscriptions has won a lot of business from UBS, and Oracle Bone Inscriptions is now a leader in human resource management system solutions based on cloud computing (other famous customers include Alcoa, MetLife, Societe Generale, Toshiba, TRW, Healthsouth and many smaller companies, such as Zillow, Shutterfly and Boko).

I think more and more customers of PeopleSoft and Oracle will see great potential here, and the progress of Oracle will make Workday's solution no longer have the advantages of "uniqueness" and "monopoly". So in many ways, Oracle Bone Inscriptions's competitiveness has caught up with Workday.

We were impressed when Oracle Bone Inscriptions bought Taleo. Oracle Bone Inscriptions's massive investment in Taleo will continue to promote its leading position in the fields of recruitment, talent search, applicant experience and data mining analysis. Oracle Bone Inscriptions not only invests in Taleo, but also shares its core technologies and products with Taleo, such as data analysis products, mobile (Oracle Bone Inscriptions mobile application will be launched soon) and core recording system.

Oracle Bone Inscriptions's analytical products based on traditional database architecture are far ahead of Workday today. They think their systems are easier to use and can become industry leaders, but they still have a lot of work to do. If you want to build a human resource data warehouse and talent analysis system, you may prefer to use Oracle or SAP.

Working days plus Salesforce.com.

In a few weeks, Workday and Salesforce.com will make an announcement. The two companies are likely to join hands, and Workday will provide customers with the best and first-class cloud ERP solution, which will be integrated with Salesforce.com social tools. For medium-sized enterprises, this may be a very attractive solution.

Nowadays, social software is becoming an essential "function" of enterprise core applications, rather than an isolated product. This is why almost all human resource providers in the market will "socialize" their applications, such as sharing information, commenting, and using the employee directory in the system. Workday plans to provide these functions in applications (Workday now has certain social functions and plans to provide more social applications), so the integration with Salesforce.com is more like a sales partnership than a strategic product partnership. However, it is very exciting to be able to purchase both Workday and Salesforce.com at the same time and fully integrate the two systems (we may use it in our business).

Salesforce.com will announce the release of "work.com" in the next few weeks, and plans to upgrade the modules of employee management, goal setting, performance management and more tools. (The company acquired the socialized target management system Rypple in June 5438+February last year).

Translator's Note: It is the general trend for enterprises to use the cloud first and then socialize! Personally, I think the first thing is cloudization, not socialization.

Don't forget software vendors such as SAP and IBM.

Don't forget that there are other companies eyeing this huge market.

IBM acquired Kenexa Company and pointed out a clear goal to establish and sell its own brand of talent management software. IBM gave a "very positive and optimistic" evaluation of talent management software! IBM is quite optimistic about the market prospect of talent management software! )

SAP is selling its own enterprise-level human resource management cloud application solution, payroll and ERP solution (now launched, new functions will be launched every quarter), and the product roadmap is very similar to Workday. SAP's data analysis solution is very complete, which will drive Workday to invest heavily in this area.

One exciting thing Workday did was to legalize "cloud ERP". IT departments all over the world have made a great impact.

In general, large companies will replace their core systems every 7- 10 years (especially when new technical architectures appear). This is a difficult decision. To know that changing suppliers is a very expensive process, enterprises must ask themselves what the real return on investment is by pressing the "change system" switch.

Through its innovation, Workday showed enterprises the ERP "paradise" based on cloud computing, and we all liked it very much. The rest of the enterprise software industry has also been guided to develop in the same direction. Oracle Bone Inscriptions, SAP, ADP, Silkroad, SumTotal, NetSuite, Ultimate, almost all talent management software vendors are here now, and they are making the market bigger and more competitive.