Workday Enjoys a Wide Moat and Continues to Modernize the ERP Landscape

We consider Workday to be a best-of-breed cloud-only platform for human capital management, or HCM, software. With its fortuitous founding not long after the birth of cloud-based software in 2005, Workday was able to demonstrate to enterprise customers that they could operate core systems in the cloud. Since then, it has continued to hone the usability of its platform, added new solutions, and developed a reputation for delivering smooth implementations. Given that Workday provides core systems in HCM and financial management, we see wide-moat Workday as having robust switching costs which, in our view, will only strengthen as the firm continues to add new solutions to its existing portfolio.