This new agreement is an expansion of an existing partnership between IBM and Workday.
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“This is quite a coup for IBM, not only because of the length of the cloud contract and Workday’s status as a cloud pure play but also because Workday chose it over AWS who it uses to run its production services”, noted TechMarketView analyst Angela Eager.
Workday (WDAY) , the biggest provider of cloud HR and financials apps to enterprises, plans to have IBM’s (IBM) cloud infrastructure act as “the foundation” for its app development and testing environment.
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”.
We expect IBM to continue to push its IBM Cloud services in the market place (has 50 scalable datacenters in 17 countries).
Workday has a series of enterprise apps it delivers as a service, including financial management, human resource management and professional services.
The company delivers a range of enterprise cloud services to provide clients with more choice and flexibility in their digital transformation.
Workday and IBM have worked together in some capacity for several years now.
Workday intends to expand the use of IBM Cloud over time beyond development and testing. Mr. LeBlanc further noted that the “preferred cloud partnership with IBM” would allow Workday to increase the pace of its overall R&D efforts, which would, in turn, lead the company to provide more value to customers.
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IBM’s cloud will serve as “the primary platform for Workday’s development and testing”, said IBM. Today’s announcement builds on the IBM and Workday partnership, which includes IBM’s global Workday Consulting Services, the 2015 acquisition of Meteorix-a leading Workday services partner-and IBM’s own use of Workday Human Capital Management for its global workforce.
