Let’s not beat around the bush.
The HR tech space is entering another consolidation cycle, and this one feels different.
Interest rates are starting to fall. Growth expectations are back on the table. And suddenly, some of the largest enterprise software players in the world are turning their attention not just to HR, but to talent.
If you blink, you might miss it. So here’s what’s going on, and more importantly, why it matters.
At the heart of enterprise HR tech, the “Big 3” – SAP SuccessFactors, Workday and Oracle – own the infrastructure.
This is where your HRIS lives. It’s where core HR data sits. It’s the system of record. But beneath the shared foundation, their strategies are starting to diverge.
SAP are doubling down on process.
Workday are leaning hard into the experience.
Oracle is positioning itself as the underlying infrastructure.
SAP has always had one huge advantage: a massive install base and deep links into ERP. But its HR strategy has often felt, well, just bolted on.
That’s changing, or more accurately, they’re trying to change it. Their acquisition of SmartRecruiters signals a bolder move – SAP wants to own the entire talent process.
Historically, SuccessFactors has felt fragmented – recruiting, learning, performance and skills scattered across modules with questionable integration. SmartRecruiters could change that. Done right, this could unify the hiring, onboarding, and mobility experience and connect skills directly to business performance via S/4 HANA.
If SAP nails this, it becomes the most process-complete player in the market. And I suspect SmartRecruiters could be the first of many acquisitions by SAP in the coming few years.
Workday has long been the darling of enterprise HR tech. CFOs love it. HR teams admire it. Sometimes. And its elegant design has made it a leader in the last HR tech wave.
But Workday’s strategy is evolving.
With the recent acquisitions of HiredScore and Paradox, Workday is making a deliberate play to own the talent experience:
This signals a shift: Workday wants to own every moment where employees experience talent decisions, from hiring to mobility to retention. It’s no longer just about workflows; it’s about creating a seamless, human-centric journey.
Oracle has been the quiet heavyweight in this space. Until now.
Their recent AI partnerships with OpenAI and NVIDIA, combined with deeper integration across HCM, ERP, and analytics, are potentially game-changing. Oracle’s no longer just a payroll and records system; it’s rapidly becoming the enterprise AI infrastructure layer.
Because Oracle connects skills, finance, supply chain, and business performance, it’s better positioned than almost anyone to make skills matter – not just to HR, but to the entire business.
And the market’s noticed: Oracle’s share price has soared since May, reflecting investor belief in its AI-first enterprise platform.
While the Big 3 fight over infrastructure, Cornerstone is playing a different game: own the employee-facing layer.
Through its Galaxy vision and acquisitions of Saba, SumTotal, EdCast, Talespin, and more, Cornerstone aims to become the front-end talent experience platform:
The goal? To own the layer between humans and the HR system.
It’s an audacious bet and if Cornerstone executes, it could redefine the user experience for talent across enterprises. That’s a big ‘if’ however, given questionable integration
Across all this consolidation, one truth cuts through:
Skills data is only valuable if it connects to business outcomes.
We’ve spent the best part of a decade obsessing over taxonomies, ontologies, and skills graphs. But skills without context don’t drive value.
The unlock comes when you can draw a straight line from skills to → work → performance → business impact.
And the players best positioned to do this? SAP and Oracle.
Why? Because they sit closest to financials, operational KPIs, and strategy. If they connect skills to outcomes, they won’t just own the HR stack – they’ll own the strategic talent layer.
This consolidation wave isn’t about buying features. It’s about control, influence, and value.
Whoever wins this race won’t just sell HR software. They’ll redefine how organizations understand, develop, and deploy talent.
And the skills layer? That’s the battleground.
At Skill Collective, we’re advising global enterprises on navigating this shift from tech stack choices to skills-linked workforce strategies.
Because this isn’t about tools. It’s about connecting people, strategy, and business performance.