Telecom software company Idiro Technologies has received more than €1 million in funding from a Siemens venture capital fund and Enterprise Ireland

Idiro develops software for telecom companies to mine customer data, drive sales and reduce provider switching, or "churn". It is the first Irish company to receive Siemens funding.

"Everyone we've talked to is very interested in our product and now we have the means to be more assertive about developing our product while we still have a lead in the market," said Aidan Connolly, the company's Cork-born chief executive, who founded Idiro with his brother Liam two years ago.

In a maturing mobile communications market, retaining customers and increasing sales through data mining will be a crucial source of revenue for providers. "Idiro's solutions will change the way companies analyse their customers and run their marketing campaigns," Mr Connolly said.

Minister for Enterprise, Trade and Employment Micheál Martin announced what he called a "superb" deal in Dusseldorf yesterday.

He said it was "symbolic" that the first announcement in Enterprise Ireland's new internationalisation strategy was connected with Siemens.

The Minister said the German company's construction of the Ardnacrusha hydroelectric power station 80 years ago played a huge role in the electrification of Ireland and the birth of the modern state.

"Idiro dovetailed really with the new Enterprise Ireland strategy," he said.

Mr Martin said the investment would show German investors that Irish technology companies could offer "world-class solutions". He said it would also give "confidence and hope" to Irish companies trying to penetrate the German market.

Ulrich Bolze of Siemens Acceleration said: "Irish start-ups still tend to be too domestic-focused, but if they want to be profitable they need to move into the European market."

He added: "We talked to potential customers and everyone we talked to about it told us that Idiro has something they've been looking for, but hadn't a product developed."

Siemens Acceleration combines traditional venture capitalist investment with access to Siemens research and development facilities and sales structure.

"Companies like T-Mobile or Vodafone might balk at working with a small Irish company with 20 employees, but Siemens is a known name," said Angela Byrne of Enterprise Ireland's Dusseldorf office.