MYOB takes a (slightly) different approach to accounting in the cloud

It’s exciting times for accounting software maker MYOB as it launches its cloud-based product AccountRight Live.

With a million users in New Zealand and Australia, comprised mostly of ‘mum and dad’ type businesses, general manager Julian Smith says it is seeking to get these companies get into the cloud with no fuss and even less stress with the new solution.

“Where AccountRight Live differs is that it combines the best of both worlds – online and offline – to deliver the advantages associated with each,” says Smith.

That’s because AccountRight Live has a desktop component and a cloud component; the desktop bit works even when it’s offline, synching to the bit in the cloud when a connection is available.

While cloud aficionados, city slickers and the technologically gifted might snark at such an approach, there is sound reason for it, which MYOB backs with research.

“We asked our customers, with the help of McKinsey, which model they prefer: online only, desktop only, or a combination of both. Some 60% said they would prefer a hybrid model. Next most popular was desktop only, with cloud somewhat behind that,” Smith reveals.

This, combined with an ageing business population, goes to the heart of MYOB’s approach. Most existing business owners takes comfort in ‘owning’ their data, as well as the availability of an offline system should connectivity not be available.

“Those of us who live in the major centres take broadband for granted – but across the country, where many of our customers are located, connectivity isn’t assured,” Smith observes.

Continuing, he says 98% of the some 470 000 businesses in New Zealand are small organisations which are MYOB’s primary target market.

“For over 80% of these companies, the cloud is not the no-brainer that it is for those of us who use it every day. Even the term itself is not universally well-understood and it remains a somewhat perplexing thing for a great many of the people behind these businesses,” Smith notes.

But just why does the company want to put these clients into the cloud? Easy – because the advantages offered are undeniable.

“The cloud is the future. There are those who already see it, and those who soon will. It delivers massive benefits; the internet is today what refrigerated shipping was in the 1890s,” confirms Smith.

And MYOB has more research to back that up; it recently commissioned and researched a study into the online habits of the sort of customers to which it wants to bring these benefits.

Some of the findings are fairly obvious…to those of us who are already ‘cloudies (for want of a better term). Smith and MYOB’s contention is that these benefits are not obvious to the greater majority of business owners.

For example, the research (which surveyed 1000 business owners around the country) showed:

• Revenue growth in 2011 financial year – cloud users 13% more likely to have grown• 2012, Q3 sales pipeline - cloud users 43% more likely to have more work on• 2013 revenue forecast – cloud users 55% more likely to forecast growth• Diversification of products and services – cloud users 54% more likely to be diversifying• Hiring intentions – cloud users 33% more likely to be increasing staffing• Staff salaries and wages – cloud users 61% more likely to be increasing• Economic confidence – cloud users 41% confident the economy will improve < 12 months

“We know the cloud delivers gains in efficiency, in business performance and in convenience. But with an ageing business population, how to deliver those benefits has remained a problem,” contends Smith.

Furthermore, there should perhaps be some kudos attached to MYOB’s determination to do things a little differently.

“Our target market isn’t the same as some other cloud providers – many of whom specialise in a specific niche; we want to take MYOB clients and the mass small business market into the cloud in a way that they will be more comfortable with, giving them the benefit of cloud without any of the potential stress,” Smith adds.

Indeed, he says running the hybrid model is ‘technically a more difficult path to take’.

“We’ve spent a lot of time and effort into understanding what our target market wants, creating an appropriate solution, securing it, piloting it and testing exhaustively.”

AccountRight Live launches on 8 November; existing MYOB support clients can transition to the platform at no additional cost.