TechnologyOne heads into the cloud

TechnologyOne (ASX: TNE) today announced its cloud computing strategy, which it is calling TechnologyOne C2, and promised to help its customers migrate to the cloud to streamline their business and realise major operating and capital expenditure savings.

According to founder and Executive Chairman, Adrian Di Marco, the new cloud strategy will mean a radical restructure of TechnologyOne's business.

"TechnologyOne already delivers its Connected Intelligence (Ci) solutions in the cloud, but to take advantage of all the benefits of cloud technology, we are completely restructuring our business model and re-engineering our software from the ground up," said Mr Di Marco.

The new TechnologyOne Cloud Computing Suite (C2) will be built, hosted and delivered in the cloud - a markedly different approach from other vendors, which are building cloud strategies around existing architecture.

The first of TechnologyOne's new C2 cloud services will be delivered in 2011, following an internal pilot.

Mr Di Marco said the company's new offering will make it one of the only Australian-owned software providers to embrace cloud technology wholeheartedly.

"The Australian industry has been very cautious and we also had a wait and see approach until quite recently," Mr Di Marco said.

"But the only way to deliver the compelling benefits customers expect, such as substantially reduced staffing and hardware costs and streamline their business, is to rebuild our software on the cloud for the Cloud.

"Our Ci series will continue to enjoy strong sales for the next couple of years, but we will also be providing our customers with a clear transition path so they can migrate into the cloud when they choose.

"The beauty of cloud computing is that it fundamentally changes the way we look at software, and how we build, host and deliver it."

Mr Di Marco said TechnologyOne still recognised there were concerns about security from customers.

To alleviate these concerns, TechnologyOne plans to have data centres located both in Australia and offshore.

"There is actually a lot of misinformation and scare mongering around the risk and security issues in our opinion," Mr Di Marco said.

"There is also resistance to cloud computing by IT departments because of a wide ranging list of perceived issues.

"But as a CEO, if you show me I can streamline my business and substantially reduce my operating and capital expenditure and the security issues can be effectively managed then I would move into the cloud today.

"It is our responsibility to our customers to remain agile and embrace new and better ways of doing business and to assist them to transition into this exciting new concept of cloud computing.

"It's also vitally important for TechnologyOne to continue to lead and innovate, to ensure we continue to attract and retain the country's best developers.

"The TechnologyOne cloud computing offering will redefine the customer experience and ensure we can continue to deliver a compelling, secure service to the seven markets we service."