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09 Apr 2009
The former chairman of Sage has said internet-based accounting software is growing slower than most people think, causing an outcry from experts in the IT industry.
Michael Jackson, who was chairman at Sage, said the software as a service
industry was ‘growing slower than people think’ and that the market has ‘a way
to go’ yet.
The comments undermine recent attempts to talk up SaaS as the next big shift in
accounting software.
He continued: ‘I don’t think that accounting SaaS has gone as well as it should’ and added ‘it probably needs more investment’.
Business software analyst Dennis Keeling said: ‘Nothing is growing in the software market. The market is contracting so, if SaaS is continuing to grow, even if by a small amount, it is a growing market.’
When asked about the progress of accountancy SaaS providers, Jackson said ‘the industry is not growing as fast as people would have us believe.’
David Turner, marketing director of Coda, which launched its
latest SaaS accountancy model this week, said: ‘It’s definitely a mistake to
underestimate SaaS and how quickly it is growing.’
Jackson tried to buy KashFlow, the online accountancy IT company, in May last year for £3m hoping to fund it with approximately £1m of his own money and £2m from venture capital fund Elderstreet Investment.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Sage in Denial
It seems that Sage are in denial, ignoring developments in the software accountancy market because they do not have a commercial model that suits them properly.
I would expect them to be reluctant to acknowledge the popularity of SaaS.
Lets hope that start up operations out there who are delivering real innovation like FreeAgent http://www.freeagentcentral.com continue to thrive.
Posted by: David Watson, 09 Apr 2009 | 00:00
Demand for online accounting software is increasing
I have to say I agree with David from Coda, the demand for online accounting software is on the rise.
Posted by: Kathryn@Fusion Accounts, 09 Apr 2009 | 00:00