Monday, October 15, 2012

SaaS going IPO is something to Celebrate

When a company is sold there are winners and losers.  The founders win (assuming it wasn't a fire sale), initial investors win as they make their profit, the acquiring company wins as they get rid of a potential competitor and give themselves a boost in a new market.  Who looses??  You, dear reader - the CUSTOMER.. The product will not be the same - it won't develop as fast as the development will go towards integration with the acquirer's own product lines, some of the talent will cash out and leave, the pricing might change, the service will get outsourced..
Now, this is a better alternative then a company who's product you love shutting their doors, but it's still far from a good outcome for the users..
When a company goes IPO however EVERYONE wins - the founders, investors, and you the customer because now the company will hire more people to develop more exciting features; which is why I'm so excited to see Workday do so well on their IPO day.  Triple Cheer!!!


Workday, Inc. is a provider of enterprise cloud-based applications for human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management. It is focused on the consumer Internet experience and cloud delivery model. Its applications are designed for global enterprises to manage complex and dynamic operating environments. The Company provides its customers the applications to manage critical business functions for their financial and human capital resources. The Company’s architecture enables customers to share the same version of its applications while securely partitioning their respective application data. Because customers utilize its information technology (IT) resources and operational infrastructure, this framework reduces the costs of implementation, upgrades, and support. Its applications use objects to represent real-world entities such as employees, benefits, budgets, charts of accounts, and organizations.