IBM and Workday Inc strike a mutually beneficial deal

Workday Inc has signed a deal with IBM, adopting their cloud service as their primary development and testing platform.

IBM and Workday Inc have joined hands to work together for their mutual benefit. While Workday Inc, a company that provides cloud applications for finance and human resources, will leverage IBM Cloud’s data centres in 17 countries and across 6 continents to accelerate their expansion, IBM could use this fast-growing company for better strategic imperatives. Workday announced that it has adopted IBM Cloud as its primary testing and development platform in a multi-year partnership, with this initial adoption only a beginning of their correspondence with one another.

As mentioned above, this deal is mutually beneficial. For Workday, its initial growth had been astounding. A 38% jump was indeed reported in its sales growth in the last quarter, but over the past 12 months, the company has been concerned with the slowing down of its growth.

The best way to ensure faster growth is to explore newer avenues and reach out to newer markets. This will become much simpler for Workday using IBM Cloud’s global presence. Moreover, IBM Cloud’s scalable nature would also enable Workday to keep their operational expenses under control while they continue with their global expansion.

As for IBM, this deal is a plus not just because Workday has been one of the fastest growing companies off late, but because of the nature of the services that Workday provides. Workday specializes in helping organizations to staff and pay their workforce. The analytics and machine learning techniques employed by Workforce enable its partners make better financial and employee-related decisions. All this will definitely help IBM to bolster the rise of its strategic imperatives businesses.

Moreover, this is not even the first time that IBM has partnered with Workday. They acquired Meteroix last year, which was one of the top service partners for Workday. IBM has been looking for companies to boost its cloud and analytics capabilities since the last year. It struck huge deals with Apple, Facebook, Twitter, and Tencent. Although Workday’s market cap is much smaller than all of these companies, barring the exception of Twitter, its top line growth is the highest.

Calling this arrangement a mutually beneficial one is not far-fetched or presumptuous by any means. IBM has a partner company that is a fast growing niche player in the cloud services sector. Workday has a partner that will enable it to expand its services globally and keep the operational costs under control at the same time. The multi-year deal is bound to be fruitful for both the involved companies, although it is suggested that Workday could come out better of the two in this.

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