Deals

Workday gears up for IPO, plans to raise up to $500M

workday-cloudFollowing in the footsteps of Jive Software’s successful IPO, Workday, a company that provides cloud software for business operations, is said to be planning for its own public offering next year.

The company hopes to raise up to $500 million in its IPO, Bloomberg reported yesterday, based on information from two sources. Workday is expected to file its S-1, the first step to going public, in the first half of 2012, and to debut in the second half of the year.

The company has begun looking for banks to help out with the process, and it’s currently eyeing Allen & Co., Morgan Stanley, Goldman Sachs, and JPMorgan Chase. Workday is also looking to recruit a chief financial officer to spearhead its public offering.

As VentureBeat’s Sean Ludwig wrote when covering¬†Workdays’s recent $85 million funding round (which reportedly ended up fetching around $100 million), the company provides more than 230 companies with cloud services for human resources, payroll and financial management. While that may not initially sound exciting, those 230 companies account for more than 2 million users, and unlike many new cloud-based startups, Workday has a track record of helping organizations cut costs and bringing them immediate value.

It seems like we’re finally beginning to see the true value of cloud software — especially for something as critical to a business as operations management. Just look at SAP’s massive $3.4 billion acquisition of SuccessFactors, another cloud business software company.

Pleasanton, Calif.-based Workday was founded in 2005 and has thus far raised $250 million in funding.