Cash Cloud

By Lyons, Dan | Newsweek, February 13, 2012 | Go to article overview
Save to active project

Cash Cloud


Lyons, Dan, Newsweek


Byline: Dan Lyons

Forget Facebook: Workday may be Silicon Valley's next big IPO.

Everybody's talking about Facebook's initial public offering, but unless you're Warren Buffett, you're probably better off looking for a sleeper among the lesser-known companies set to go public this year.

One candidate: Workday, a small but fast-growing company in Pleasanton, Calif., that sells software to manage personnel departments, payroll, and other back-end chores. That sounds mundane, until you realize that every company in the entire world needs this stuff. Workday is, in fact, a major innovator in tech's latest craze: cloud computing. Before Apple, Amazon, and Google were putting music on the cloud, Workday was doing the same thing, only with business software. Last year the company doubled its sales to just more than $300 million.

"They are going to be an enormous company, and I do mean enormous, on the scale of Oracle or SAP or even bigger," says Scott Sandell, a general partner at New Enterprise Associates, a venture-capital firm that has invested $46 million into Workday and holds a 10 percent stake in the company.

Workday's cloud-computing model means companies don't have to install and maintain its software themselves. Instead, Workday runs the software in its own data centers, and users connect over the Internet. This makes life easier for customers and costs half as much as traditional back-end software programs.

"We're taking all of the innovations from the past 10 years in the consumer Internet and bringing those innovations to enterprise computing," says Aneel Bhusri, the company's cofounder and co-CEO.

Cloud computing doesn't get as much buzz as social networking, except for a few consumer products like iTunes. But the real money is in corporate clients. The migration of companies to the cloud represents one of the biggest shifts in the history of the HR industry. From 2010 to 2020 cloud computing will grow sixfold, to $240 billion from $40.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Cash Cloud
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?