Oracle co-founder and executive chairman Larry Ellison
Although Workday had a good quarter, beating Wall Street’s estimates for both revenue and profit, it warned investors that its spectacular growth was slowing a bit. Workday’s stock has crashed about 12% since it reported earnings after the market closed on Tuesday.
One problem appears to be that its biggest competitor, Oracle, has found a way to hit Workday with serious pricing pressure. Oracle can throw in discounts on some of its many, many other products so that a customer thinking about moving to Workday could get quite a nice little welcome basket if it signed with Oracle instead. Oracle CEO Mark Hurd explained that when it comes to Workday, particularly for US customers, there have been “some strong fights … we now win more than half the deals in the United States.”
There’s a good reason Oracle feels it must win against Workday at all costs. Oracle co-founder and CTO Larry Ellison explained, “Every single cloud company of size, of the top 10, nine of them use our database in the cloud. Workday is the only one that doesn’t. … Workday kind of build their own little database.”
Workday was founded by David Duffield, the founder of PeopleSoft after he lost his company to Larry Ellison and Oracle years ago in one of the nastiest hostile take-overs in software history……
See full story on www.businessinsider.my
Image: REUTERS/Robert Galbraith
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