Workday Doesn't Take a Day Off When It Comes to Its Positive Moat Trend

We consider Workday to be a best-of-breed cloud-only platform for human capital management software. By debuting in 2005 as a first mover in cloud HCM at an ideal time—when enterprises were looking to make the move from on-premises to cloud software solutions—Workday has benefited from its timeliness as well as its high-quality product and reputation for smooth implementations. Now that customers have transitioned to a cloud solution with Workday, we think the possibility of another vulnerable event like the cloud migration that would leave the company susceptible to customer switching, is unlikely. Instead, we see wide-moat Workday as having robust switching costs which, in our view, will only get stronger as the company builds on its core HCM offering.