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In today’s Cloud Wars Minute, I’m examining the enterprise apps vendors on the Cloud Wars Top 10 and ranking them by growth rate.
Highlights
00:25 — I wanted to look at the applications vendors inside the Cloud Wars Top 10. Ranked by growth rate, SAP is the number one fastest-growing major enterprise apps vendor in the world. Microsoft’s number two, Workday is number three, Salesforce is number four, and Oracle is number five.
01:36 — SAP reported 31% growth, $3.58 billion in apps revenue for the three months ended March 31; Microsoft, 23% (exclusively Dynamics 365). My gues, since Microsoft doesn’t disclose revenue is $1.5 billion for the quarter, a roughly $6 billion run rate. Workday’s up 19% to $1.82 billion for subscription revenue; Salesforce’s subscription and support revenue is up 12% to about $8.6 billion and Oracle reported 10%, $3.3 billion for the three months ended May 31.
02:33 — Oracle is focused now on its infrastructure. I think also the sluggish performance of its Cerner healthcare business brought numbers down. CEO Safra Catz said its strategic back office Fusion applications are at a run rate of about $7.7 billion, which would be not quite $2 billion for the quarter. That’s a mixed bag.
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03:14 — SAP recently switched to reporting not just for their S/4 HANA Cloud but what it calls its Cloud ERP Suite. Internally, it’s been measuring that for quite some time and SAP said, this is the ninth straight quarter of 30% growth or higher for the Cloud ERP Suite.
04:07 — Salesforce, overall, thinks these numbers are the high watermark. They’re going to go down. Workday CEO Carl Eschenbach said that he sees a more measured buying outlook from customers, who aren’t ready to pull the trigger on the number of deals that they had been before.
