I have 2 little kids in daycare (aged 1 and 3) and it works, but just barely. My husband works long hours in a different industry and we stagger hours so that the kids aren't spending long days in care -- I drop off around 9 before heading into the office and he picks up around 4:30. I would suggest taking your kid's personality into account when deciding between a daycare and a nanny -- my baby would likely be fine with longer days, but my elder child would find it difficult. My elder would probably be happiest with a nanny, but also probably benefits the most from the daycare setting (socialization, having to deal with multiple teachers, structure). Like all things kid-related, it totally depends on the kid.
The real problem with daycare is that the kid can't go there if they're ill. And little kids in a daycare setting get sick all the time. Seriously, all the time. I've received 3 calls to pick up my sick child from daycare in the month of February alone, and the kid has been too sick to return for several days each time. I'm a litigator, and appear in court at least a few days each week -- it's kind of a disaster. I am in a very family-friendly office, on an 80% schedule, and have family support and it's still a disaster. My spouse is generally unable to respond to the daycare call to pick up the kids, so it tends to fall to me or the grandparents, who pitch in more than is reasonable to expect.