Tracking the tracks at Tech Ed New Zealand


Xero and the state of SaaS during the Tech Ed New Zealand 2007

, posted: 15-Aug-2007 10:10

Yesterday I had a chat with two of the Xero guys, COO Alastair Grigg and CTO Craig Walker. It looks like my questions were around the same topics they have planned for todays session Voice of the Customer session ("Xero: Utilising Microsoft Technologies as the Platform for a Global SaaS Offering").

Quick background if you don't know: Xero offers on-line accounting with strong emphasis on user interface, design and functionality. The company tries to make the customer experience part of the brand and internal culture, investing in a big design team, which was one of the first things in their project.

The company launched an IPO in the NZX a couple of months ago, raising about $15 million, to help push their products in the market. Initially aimed at New Zealand businesses, Xero is also working to enter the international market.

The interesting thing about Xero is how the company is reaching for "influencers" in this market, most of the times those we know as "advisors". Right now Xero is focussed on getting accountants and consultants on board to ensure they have met the requirements of the advisors and create industry capability before trying to sell the idea directly to personal and SME businesses.

I was told there isn't really a direct competitor for their on-line product, sitting in a different category, in a market dominated by players delivering applications to the desktop.

This is also one of the differentiators for the company in terms of infrastructure. Xero adopted a quick cycle of "release early, release often" with a release almost every week, with differences and features users can notice. Because the product is completely web based, cost with support are extremely reduced because support personell need only to know about the current version, plus there are no need for complicated migration procedures from previous versions, supporting many upgrade paths, etc.

Xero based its product on Microsoft technologies, because of proven track - and support for developers. Microsoft SQL Server 2005 and Visual Studio 2005 are part of the tools used. Craig tells me they did look at alternative open source tools and technologies, including Ruby on Rails, but the support for developers needs in terms of IDE for example weren't up to the same quality of Visual Studio - yet.

The company has already reached Microsoft Gold Partner status, just a few months after the official product launch.



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Other related posts:
AvePoint at Tech.Ed New Zealand 2009
Who is at the Microsoft Tech Ed New Zealand 2008 marketplace?
Intergen at Microsoft Tech Ed New Zealand 2008








Comment by barnaclebarnes, on 15-Aug-2007 13:17

Well there are other online accounting programs. The question is are they as easy to use as what Xero should be? My bet is no.


Comment by Bwooce, on 15-Aug-2007 20:53

(oops, I should have logged in first)

I'm really not sure who they're trying to convince that there are no others in the same market. Perhaps you misheard and he meant within NZ?

I reviewed a few here, with a focus on micro-enterprise needs (graphic design). I still haven't found what I want.

Also see: Online Business Toolbox for some of the other Xero competition (I still want to investigate a few of those).

Hat-tip: PlanHQ  blog


Comment by Peter J Cooper, on 21-Aug-2007 20:42

'No direct competitors', I think they were testing you. Saasu.com supports more banks in NZ than Xero does... Cheers, Peter.


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Microsoft Tech Ed New Zealand is a technology event run by Microsoft New Zealand. The Microsoft Tech Ed New Zealand 2010 is happening in Auckland (New Zealand), 30th August - 1st September 2010, at the SkyCity Convention Centre. If you are attending the Microsoft Tech Ed New Zealand 2010 and would like to contribute with stories, profiles, and feedback please contact us. This blog is written by Mauricio Freitas and published by Geekzone.



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