Xero to be the next SAP

An article in the Infotech section of the Dominion Post yesterday morning talks briefly about the idea of Online Accounting Software Provider Xero being the next SAP, the full article here.

Why Xero could be the next SAP

The first generation of business software has on the whole been skewed towards looking after the big guys; enterprise software for large enterprises, and this came at a big cost in terms of money and time. This time around Small Medium Enterprises (SME’s) are becoming the focus of software solutions, so the model is about reasonable priced software, with no setup costs or time lag, and online accounting software like Xero is one of those key applications that every SME needs.

Why the next SAP can be built from NZ

Xero will most probably build a strong on the ground presence in the key markets it focuses on in order to get maximum uptake, but the great thing about software as a service (SaaS) is that people can just quickly sign-up, try it out and pay as they go from anywhere. Many customers don’t need consultants helping them through the sales process, and they value the ability to try, buy and use it frequently at a relatively low cost. This makes it a lot easier to run things and maintain the Headquarters down here in NZ, in fact it makes NZ the perfect HQ.