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Preview: Comments on: On Suites for Accounting Practices – Xero Invests

Comments on: On Suites for Accounting Practices – Xero Invests



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By: Ben Kepes

Sat, 18 Dec 2010 05:09:45 +0000

Chris - not much I can say in response here really.. let's see what 2011 brings huh?



By: Chris H

Sat, 18 Dec 2010 04:06:29 +0000

Crucial to Xero's acceptance, like MYOB before, them will be the influence they have on the accounting fraternity. Look at the total package represented by The Modern Practice. Despite the hype it’s hard to believe it represents what Xero claim as ‘best of breed’ and even more extravagant that they, ‘cherry picked the best solutions possible’. By choosing the products they have and investing in WorkflowMax seems a knee jerk response to keep up with competitors, wanting to present something in the absence of anything. In aligning with those chosen Xero has drawn a line in the sand that must leave aspiring third party developers, gathered around the Xero honey-pot, wondering. If their aspiration is bringing a competing product to market to any of the chosen ones, what might they be thinking? The future will tell if this move isn’t a little hasty, however Xero in making The Modern Practice the focus of the Annual Partner Conference in February 2011 endorses it further. They even use the term beta for it’s suite of products – don’t quite understand how that can apply to a loose set of products drawn together. No, somehow this just all seems to patchwork to gain credibility. If this is practice management then best of breed it isn’t. Maybe Xero see it as sufficient to convince the accounting partners, but the more savvy ones will be unconvinced.



By: Ben Kepes

Sun, 03 Oct 2010 00:39:47 +0000

David - agreed it seems like a big slice for a small bag of gold. The other concern is that it also limits WorkFlowMax's possible moves in the future...



By: Dave

Sat, 02 Oct 2010 20:53:00 +0000

I struggle with what $200K will buy. In essence it's one good developer for a year. Sure seems like a big slice for such a small amount of money.



By: BookAdvisor

Thu, 30 Sep 2010 03:28:48 +0000

I'd agree, 15.9% is huge.



By: Ben Kepes

Wed, 29 Sep 2010 22:34:50 +0000

Gavin. From the NZX announcement "while Xero could have developed the tax lodgement system itself, this functionality is quite specific to New Zealand and sits closer to the WorkflowMax product. We’ve decided Xero would be better to focus its resources on its international markets and make this investment in Max Solutions so it can grow its team in New Zealand" which reads very much like Xero outsourcing product development via investment (which makes sense and is a positive thing). Agreed the investment comes from a high profile GTM partner in the accounting vertical. If your ambitions are international however I'd contend that 15.9% is a big pound of flesh to give...



By: Gavin George

Wed, 29 Sep 2010 22:23:44 +0000

Interesting take on it Ben. Unfortunately your statement of "$200K for a custom development job" couldn't be more incorrect. This is a capital injection, that enables us to extend our product/IP into a space that gives WFM a more compelling offering in one of our key vertical markets. Oh and that investment is coming from the ideal go-to-market partner in that vertical in NZ.