Enterprise Software Firm Workday Signs Major Cloud Deal with IBM

Enterprise software provider Workday has signed a seven-year deal with IBM to use IBM Cloud as the foundation for its development and testing environment, according to an announcement on Monday.

Workday says that it intends to expand the use of IBM Cloud over time to support its global expansion. The company provides cloud-based finance and HR software from offices around the world.

“IBM and Workday are both delivering transformative applications and services in the cloud,” Aneel Bhusri, co-founder and CEO, Workday said in a statement. “Workday will use IBM Cloud to continue accelerating Workday’s internal development and testing efforts to support our ongoing global expansion.”

Wells Fargo calls the deal a win for IBM Cloud, but says “near term pressures from declines in legacy businesses and investments in new growth areas persist.”

IBM already offers Workday Consulting Services, and uses Workday Human Capital Management for its own global workforce. IBM’s Workday capabilities include Workday business process design, Workday integrations, Workday data conversion, Workday reporting, change management, ongoing Workday support and optimization and Workday enabled HR and finance business process outsourcing, according to a solution brief.

In its fiscal 2017 first quarter results, Workday total revenues were $345.4 million, an increase of 38 percent from the first quarter of fiscal 2016. Subscription revenues were $280 million, an increase of 39 percent from the same period last year.

Earlier this year, Workday expanded its operations to support businesses in Spain, and opened up a new office in Madrid.