TechnologyOne (ASX: TNE), Australia’s largest enterprise software company, has today warned that many IT suppliers won’t survive in the long term as the company delivers against its vision of enterprise Software as a Service (SaaS).
The news was announced at the opening of the company’s major user conference, Evolve, where more than 2,200 partners, customers and IT/business decision-makers are attending networking and industry insights sessions over the next three days, at the Brisbane Convention and Exhibition Centre.
Speaking at the opening keynote address this morning, Founder and Executive Chairman, Adrian Di Marco said SaaS providers like TechnologyOne are bringing true mass production to the software industry. In this new cloud first, mobile first world, it no longer saw traditional multinational vendors such as Oracle and SAP as competitors, and was increasingly coming up against fast-growing SaaS players such as Workday.
“We have invested hundreds of millions of dollars to create a software architecture and an underpinning production line of servers, that can serve up our enterprise software as a service, to thousands of customers simultaneously. This will provide our customers with massive economies of scale and will enable customers to take advantage of new technology paradigms, simplify their computing model, reduce costs, improve efficiencies and focus on their business,” Mr Di Marco said.
“There are only a few companies globally offering true enterprise Software as a Service, which has changed the competitor landscape for us.
Mr Di Marco added that the world was at the start of the next stage of the industrial revolution; the digital revolution and the creation of a digital economy.
“The physical world around us today is based on the economies of scale delivered by mass production, brought about by the second stage of the industrial revolution when electricity and mass production came to life. In today’s world we have massive power generators that power the factories; delivering the benefits of mass production to us.
“With the digital revolution, massive infrastructure providers like Amazon Web Services will allow software factories (that is, SaaS vendors like TechnologyOne) to deliver the benefits of mass production in the software industry. Hosting providers are akin to the cottage industries that disappeared with the second stage of the industrial revolution.
“There are only a handful of vendors actually able to provide true enterprise SaaS, and we see significant challenges for many of those competitors. While their architecture is multi-tenanted, the data is also multi-tenanted, which means that all customers' data is stored together. This is going too far as it poses a huge security risk for customers; we believe the future is in providing multi-tenanted software, in a single-tenant database.
“In addition, these new companies don’t have the breadth or maturity of software as we do. The software isn’t built for mobile devices from the ground up, meaning users get a different, and often limited experience on mobile.
“TechnologyOne is the only enterprise vendor guaranteeing to deliver 100 per cent of our enterprise software on smart mobile devices - with no carve outs and no exceptions. This provides customers with access to the full functionality of our software on any device, anywhere, at any time.”
TechnologyOne has experienced unprecedented growth in its SaaS business, with cloud revenues growing by more than 100 per cent year-on-year.
“There’s no denying that the market is accelerating towards SaaS. The past 24 months has seen more than 150 cloud customers signing up for our enterprise SaaS solution,” Mr Di Marco said.
“This growth is across all industries, from federal government to local government, education and financial services.
“In fact, our largest wins in 2016 have all been SaaS deals. This alone speaks volumes towards this market shift. We’re now providing businesses with economies of scale and a level of simplicity that has never before been possible.”
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TechnologyOne (ASX:TNE) is Australia's largest enterprise software company and one of Australia's top 200 ASX-listed companies, with offices across six countries. We create solutions that transform business and make life simple for our customers. We do this by providing powerful, deeply integrated enterprise software that is incredibly easy to use. Over 1,000 leading corporations, government departments and statutory authorities are powered by our software.
We participate in only eight key markets: government, local government, financial services, education, health and community services, asset intensive industries, project intensive industries and corporates. For these markets we develop, market, sell, implement, support and run our preconfigured solutions, which reduce time, cost and risk for our customers.
For 28 years, we have been providing our customers enterprise software that evolves and adapts to new and emerging technologies, allowing them to focus on their business and not technology. Today, our software is available on the TechnologyOne Cloud and across smart mobile devices.
For further information please visit: TechnologyOneCorp.com