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SaaS uk accounting market 2010

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Opportunities and challenges in the UK SaaS accounting market

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SaaS uk accounting market 2010

  1. 1. <ul><li>September, 2010 </li></ul>Dennis Howlett AccMan SAAS UK ACCOUNTING MARKET: OPPS AND CHALLENGES
  2. 2. obligatory advert AccMan
  3. 3. <ul><li>IDC: SaaS accounting no 3 on list </li></ul><ul><li>UK YoY growth = 100% ave in SMB </li></ul><ul><li>“ Every SaaS vendor in the Software Insider Index drove 14% to 26% growth despite the pick up in on-premises license sales” (Ray Wang - Altimeter: 20th Aug, 2010) </li></ul>AccMan SAAS IS HERE TO STAY
  4. 4. <ul><li>Total opportunity = 5.3 million people/enterprises </li></ul><ul><li>Real opportunity, likely 1.3 mill cos + proportion of 0.3 mill ptnrships </li></ul>AccMan UK SME MARKET
  5. 5. <ul><li>Xero’s est per annual presso: July, 2010 </li></ul>AccMan UK SME MARKET
  6. 6. <ul><li>Highly competitive, 70 apps </li></ul><ul><li>Kashflow, FreeAgent, Xero, e-conomic, Liquid, WinWeb...etc etc but </li></ul><ul><li>All to play for while... </li></ul><ul><li>Sage being disintermediated </li></ul>AccMan UK MARKET - VSB
  7. 7. <ul><li>Vertical - FreeAgent </li></ul><ul><li>Horizontal - Xero etc </li></ul><ul><li>Process - BrightPearl </li></ul><ul><li>All-in - WinWeb </li></ul><ul><li>Limited - FreshBooks, Blinksale </li></ul>AccMan VSB DIRECTIONS
  8. 8. <ul><li>Very few credible players </li></ul><ul><li>Twinfield, NetSuite, Intacct, SAP BYD and ?? </li></ul><ul><li>High value opportunity but... </li></ul><ul><li>Suites likely to win significant value deals </li></ul>AccMan ‘ M’ IN SME MARKET
  9. 9. <ul><li>Price assumptions are whacked </li></ul><ul><li>Players think price is crucial </li></ul><ul><li>NS delivers 3x Twinfield for 5x+ price </li></ul><ul><li>Key is perceived service value </li></ul>AccMan THE PRICE MYTH
  10. 10. <ul><li>Kashflow: £14.99 for accounts. Lots of APIs </li></ul><ul><li>FreeAgent: £25 but inc CT calcs. </li></ul><ul><li>Both growing fast - FreeAgent got IRIS deal - go figure? </li></ul>AccMan THE PRICE MYTH
  11. 11. <ul><li>Perceived value creates the deal </li></ul><ul><li>Try before you buy matters </li></ul><ul><li>User experience vitally important </li></ul><ul><li>Post sales service = stickiness </li></ul>AccMan THE VALUE PROPOSAL
  12. 12. <ul><li>“ When Nintendo introduced the Wii in 2006, the video game console wars where in full swing…Nintendo opted out of this [technology arms] race by giving us a console that was a lot less of the things we were expecting, and a lot more of the things we weren’t. And the result was a revelation. An eye opening, unanticipated revelation. All it takes is for a single firm to come along and alter the evolutionary trajectory of a single category.” - Youngme Moon - Different: Escaping Competitive Herds, 2010 </li></ul>AccMan THE VALUE PROPOSAL
  13. 13. <ul><li>It’s not Sage </li></ul><ul><li>It’s not secure </li></ul><ul><li>I can’t customize </li></ul><ul><li>It doesn’t do Excel </li></ul>AccMan ACCOUNTANT’S OBJECTIONS
  14. 14. <ul><li>It’s not Sage/Microsoft/MYOB etc </li></ul><ul><li>It’s not secure </li></ul><ul><li>Hybrid is better (if you must) </li></ul><ul><li>It doesn’t do Excel </li></ul>AccMan INCUMBENT’S FUD
  15. 15. AccMan THE SOLUTION
  16. 16. <ul><li>Every interaction is a service opportunity </li></ul><ul><li>Engage often and on their terms </li></ul><ul><li>Differentiate on service </li></ul><ul><li>Help accountants’ onboard clients </li></ul>AccMan ACTION
  17. 17. AccMan EXAMPLE
  18. 18. <ul><li>Market opportunity is huge </li></ul><ul><li>FUD is rife - talk benefits, not FF </li></ul><ul><li>Make user experience stunning </li></ul><ul><li>Never compete on price </li></ul>AccMan RECAP
  19. 19. Dennis Howlett AccMan Q&A
  20. 20. Dennis Howlett AccMan CONTACT <ul><li>email: [email_address] </li></ul><ul><li>Twitter: http://twitter.com/ dahowlett </li></ul><ul><li>Skype/Facebook/Lin kedIn: dahowlett </li></ul><ul><li>tel: +34 953 708 636/+34 607 482 739 </li></ul>
  21. 21. Dennis Howlett AccMan THANKS & CREDITS <ul><li>Thanks for your attention </li></ul><ul><li>Thanks to Hugh MacLeod: http://www.gapingvoid.com for use of his art </li></ul>

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