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Microsoft & Workday Team Up to Expedite Cloud Computing

Zacks Equity Research

The world’s largest software maker, Microsoft Corporation MSFT has partnered with Workday to bolster its cloud computing initiatives.

Workday is a provider of enterprise cloud applications for finance and human resources. The partnership will aim to integrate Microsoft’s Office 365 suite with Workday’s cloud-based human resources (HR) and finance software.

The news comes a day after Microsoft announced its cloud deal with Adobe Systems. Microsoft and Adobe will integrate each other’s cloud computing products to offer advanced data-driven sales and marketing capabilities to clients.


Since Microsoft Office 365 tools will be integrated with Workday’s HR and finance software, when any company adds a new employee to its team using Workday’s HR software, automatic accounts will be created for various Office 365 applications. Also, if there is alteration in the employees’ position, the updates made in Workday’s software will automatically be reflected in the Microsoft software.

This integration will equip organizations with advanced cloud-based technologies that optimize operations by improving resource allocation and other important metrics.

We believe that the partnership will prove mutually beneficial going forward. It will ensure tighter integration between Microsoft and Workday clouds, which will help customers to easily and securely move their data between the two platforms.

The CEO of Microsoft, Satya Nadella, said in a statement that the partnership will help companies to simplify daily tasks and actions. He added, “the impact of this work goes even further, to infuse more intelligence into customers' organizations. Every company in every industry holds a wealth of information in the form of organizational data. Connecting Office 365 to Workday will provide customers with new knowledge and insights to understand how and when and with whom they're spending their time, and take action converting data into intelligence."



To Conclude

Microsoft is leaving no stone unturned in progressing on CEO Nadella’s cloud-first mobile-first strategy. Cloud computing is the fastest growing business within the company. In fact, management stated that the company is on track to deliver $20 billion in commercial cloud revenues by 2018.

Competition in the cloud computing market is intense, particularly since it includes players like Amazon AMZN, which is strongly entrenched and others like salesforce.com, inc. CRM and Alphabet Inc. GOOGL, which are determined to expand their share in the market.

The public cloud computing market, according to IDC, is expected to grow to more than $128.0 billion in 2018 representing a five-year compound annual growth rate of 22.8%. We believe that the latest efforts will help Microsoft as it pursues opportunities in the ever-growing cloud computing segment.

Zacks Rank

Currently, Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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