Is Oracle facing challenges due to Workday pressure?

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Oracle seems to be facing significant challenges from global ERP vendor Workday Inc.

Larry Ellison, executive chairman and chief technology officer of Oracle, said: “I don’t know who you consider the competitor in ERP. If Workday is the competitor, every quarter, we sold more deals in Q1 than Workday’s sold ERP deals and Workday has sold since their company began.”

Workday last month said its total revenues rose 51 percent to $282.7 million for the fiscal second quarter ended July 31, 2015 from the second quarter of fiscal 2015. Subscription revenues grew 56 percent to $223.7 million.

Workday, an enterprise cloud applications vendor for finance and human resources, has crossed the 1,000-customer milestone in Q2.

Aneel Bhusri, co-founder and CEO of Workday, said: “We saw strong sales traction for growth initiatives including financial management, education and government industry solutions, and European expansion.”

In addition to Larry Ellison, Oracle CEO Mark Hurd spoke in length about Workday during the latest analyst call.

“Billings grew 70 percent, growing much faster than Salesforce and Workday. We added 612 new SaaS customers in the quarter. 616 expanded their SaaS business with us in the quarter. In HCM, it was 166 new customers, more than double what Workday added,” Hurd said.

“Oracle CX added 280 customers. ERP EPM added 200 customers, double last year. That is more than Workday’s lifetime sales. We now have 1,350 customers in our installed base. More than 300 are already live, including 100 that went live in Q1. What’s taken Workday eight quarters to do, we did in one quarter. Oracle PaaS added 800 new customers in the quarter, 2,500 in just two quarters,” Hurd noted.

Oracle on-premise software revenue rose 4 percent to $5.8 billion. Oracle expects the on-premise software business to remain steady.

Within the cloud business, SaaS and PaaS bookings grew 165 percent this quarter on top of the 54 percent growth from Q1 of last year. SaaS and PaaS revenue rose 38 percent to $452 million. SaaS and PaaS billings grew 70 percent.

Hardware revenues grew 6 percent including $570 million from hardware products and $559 million from hardware support. Total revenue increased 7 percent to $8.5 billion.

CEMEX, an Australia fusion HCM, has replaced Workday with Oracle. Cypress Semiconductor, GDF Suez, Limited Brands, Nationwide Insurance, Restoration Hardware and Rutgers University are some of the new clients of Oracle, said the company.

Oracle expanded its HCM clouds at Omnicare, the Navy and Westpac Bank. Athena Health and Chicago Sun-Times are new customers for ERP EPM. Fox Home Entertainment, U.S. Department of Energy, LendingClub Corp, Lenovo, LG Electronics, Rutgers University.

In sales service cloud, Oracle added Fox Home Entertainment, Royal Mail, Sallie Mae, SIRIUS XM, Toshiba Medical, Wesfarmers, expansions at Cigna, Motorola, Nikon, Polycom, Virgin Atlantic and Westpac.

In its marketing cloud, Oracle added Aer Lingus, General Mills, JeansWest, Telstra, Verizon, expansions at Booz Allen Hamilton, Forever 21, National Instruments, NetApp, Pier 1 Imports, Public Broadcasting System, TaylorMade Golf Company and Time Inc.

“We have deployed cloud services in 19 data centers and 14 countries. We have increased our data center service delivery capacity by 90 times from 0.5 megawatt to 45 megawatts in three years. We have installed over 40,000 physical devices, 100,000 virtual machines and 8 petabytes of storage,” said Larry Ellison, executive chairman and chief technology officer of Oracle.

Baburajan K
[email protected]

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