SYSCO, A Dublin-based business software provider, anticipates its software as a service product launched earlier this month will deliver revenues of more than €1 million over the next two years.
Said to be the first of its kind in Ireland, the enterprise resource planning (ERP) software is delivered over the internet instead of being installed on a company’s servers. The ReadyDynamics.com product is based on Microsoft’s Dynamics business software range, which includes a customer relationship management tool.
Businesses use ERP software to manage all aspects of their operations more efficiently. It is traditionally associated with lengthy, complex and expensive projects, but Sysco said it has reduced the upfront consultancy time required and the price is a fixed monthly fee.
The ERP package starts at €99 per user per month for the software licence. As an introductory offer, Sysco is providing qualified parties with a free 30-day trial of the software.
Software as a service is a fast growing segment of the IT market, with analysts estimating it will grow at over 20 per cent per year until 2011.
According to the industry research firm IDC, worldwide revenue from online software is forecast to grow to $12.4 billion this year and many businesses expect to spend one-quarter of their IT budgets on it.
Based on this analysis, Sysco estimates the market potential in Ireland for ReadyDynamics.com is at least €1 million in the next two years, which would consist of sales to new customers. Last year Sysco’s turnover was €6.5 million.
“I’m taking the conservative view. I would hope to reach €1 million in revenue within 18 months to two years. We must have at least 20 prospects at the moment,” said Charlie Donnelly, managing director of Sysco.
Software as a service is often pigeonholed as appropriate for small or medium businesses, but Mr Donnelly said it is also well suited to large enterprises. One semi-State body and a large retailer are currently evaluating ReadyDynamics.
“Because it’s based on Microsoft Dynamics Nav we can bend it and change it to whatever the customer requires,” he said. “It is a model that will come more into vogue as the market matures, particularly if the downturn is prolonged. This is something people will look at because from a cost point of view it makes a lot of sense.”
