TechnologyOne replaces incumbents with simple, low risk products
Since the successful launch of its new industry-leading preconfigured “One” solutions a year ago, TechnologyOne (ASX:TNE) has secured 38 customers in deals worth more than $16m, replacing multinationals Oracle and Microsoft at more than 20 per cent of sites.
TechnologyOne Executive Chairman Adrian Di Marco said the success of products like OneGovernment and OneCouncil across Australia and New Zealand was a sign of things to come.
“This year the world has changed beyond recognition from both a technology point of view and because of budgets tightening globally.
“We are winning business because we have a low risk, proven practice product that can be implemented quickly and cost effectively, at a time when many large business and government bodies are looking to replace their systems.
“The market is swamped with tenders at the moment from organisations that have been suffering with their existing systems for too long. We are hearing they cannot afford the maintenance costs and do not want to be beholden to consultants,” Mr Di Marco said.
“Everyone is looking for simplicity and sustainability – they only want to deal with one vendor and they want reassurance their software will be relevant in 10 and even 15 years’ time.
“The reseller model is broken because companies that don’t implement and support software won’t take responsibility for failures and upgrades are often massively costly, while at the other end of the market customers are worried about investing in software from small vendors in case it becomes obsolete.
“The rapid rate of change we have seen in the last 12 months will continue and could even accelerate, so companies that cannot afford to commit large budgets to research and development (R&D) are likely to fall by the wayside.
“It stands to reason that there will be more market consolidation as smaller players don’t have a big enough team to move to an agile environment, the dollars needed for R&D or the ability to attract top developers,” Mr Di Marco said.
TechnologyOne, the largest Australian owned enterprise software company, spent more than $30million on R&D last year to ensure its products remain relevant for the long term.