Workday's Zimit acquisition gives it automated CPQ
Workday invested in Zimit, and later integrated its configure, price and quote software. Now, it's acquiring the company as part of its plan to build enterprise services.
Workday Inc. has gone from investor to acquirer of Zimit Inc., which makes configure, price and quote automation software for services industries.
On Wednesday, Workday said that it had an agreement to acquire the firm, which is based in Deerfield Beach, Fla., for an undisclosed amount. The acquisition is not out of the blue.
Workday funded Zimit through Workday Ventures, Workday's investment arm focused on early to growth-stage companies. One year ago this month, Workday integrated Zimit's software into its platform.
Configure, price and quote (CPQ) software generates quotes for configurable technology products and services "including subscriptions, professional services, managed services, bundled solutions, and XaaS (anything as a service)," Workday stated in its announcement.
Zimit's software integrates with Workday's Professional Services Automation (PSA) platform, which is used for project and resource management, including expense tracking, project billing and revenue recognition. Zimit's integration takes a customer project and provides quote and proposal transitions to the PSA platform, according to Workday.
The acquisition is a customer experience move, said Liz Miller, vice president and principal analyst at Constellation Research. Zimit, founded in 2015, is purpose-built for subscription- or service delivery-focused enterprises. It "is all about delivering an experience customers have come to expect: fast, seamless and self-directed," she said.
Liz MillerVice president and principal analyst, Constellation Research
"For Workday, this was an organic extension to their work in professional services automation," Miller added.
Workday's existing PSA tools "could stand up a services project and engagement, bringing everything from finance to resource management into one view," Miller said. "Now, that view takes a critical step closer to the customer with a configure, price, quote solution that identifies exact needs and expectations of the customer."
Workday is expanding its enterprise services, and the purchase of Zimit's CPQ software brings it closer to having a CRM product, Miller said.
Workday has also acquired firms that move it into ERP-type areas. It bought Scout RFP in 2019 for $540 million, after investing in this sourcing and procurement company. In 2018, Workday acquired Adaptive Insights for $1.55 billion, a corporate performance management platform. Its tools provide budgeting, forecasting and modeling.
Patrick Thibodeau covers HCM and ERP technologies for TechTarget. He's worked for more than two decades as an enterprise IT reporter.