Exclusive: MYOB’s secret cloud solution smasher… code-named ‘Natasha’

MYOB is set to release a new cloud-based ERP solution aimed directly at the company’s mid-sized clients, believed to be code-named ‘Natasha’.

According to sources close to the matter, the secret offering will provide greater choice though the firm’s enterprise offering, as confirmed by MYOB to TechDay.

“The new cloud-based ERP solution will be available alongside EXO Business and EXO Employer Services,” Sarah Putt, MYOB’s NZ Public Affair Manager told TechDay.

“It will provide clients with a choice of products that best suit their needs both functionally and deployment-wise (SaaS or on-premise).”

With regards to product development in MYOB’s Enterprise Division, in August last year Acumatica announced it was partnering with MYOB on developing cloud-based ERP and financial software.

While acknowledging a new product was in the pipeline, Putt insists MYOB has not yet announced the name of any new offerings, and has no launch dates to announce at this time also.

Without confirming the existance of 'Natasha', Putt did concede that even though pricing is yet to be finalised, the solution will be a subscription model, which will be fully cloud-based.

“It’s a cloud-based solution accessed via a web browser,” Putt says. “We’re responding to the growing market demand for cloud-based ERP solutions and are confident our complimentary cloud-based ERP solution for mid-sized clients will have steady uptake.

“We are not ready to announce details of the launch at this time. When launched it will be simultaneously in New Zealand and Australia.”

Putt adds that while MYOB is proud of its partner network, which continues to growth and is a key part and strength of the business, the company “has no plans to sell directly into the New Zealand market.”

Market share…

According to Putt, MYOB continues to lead the market across ANZ, with the Business Division and Accountant Division enjoying over 60 percent market share.

“MYOB now generates 2.6 times the revenue of its nearest competitor and works with 1.2 million businesses and over 40,000 accountants,” she adds.

A shift from perpetual licenses to subscription model has seen recurring revenue increase to 90% of total revenue, Putt claims.

Furthermore, Putt says revenue has grown 7.6% during 1H2013, driven by an uptake of AccountRightLive (a mix of on-premise and cloud solution) and Live Accounts (pure cloud solution).

Despite the company’s apparent good health across the market, the perception remains that Xero leads the way in the cloud SMB space, with MYOB struggling to catch up.

“Our position as the market leader in the SME accounting solution space and the public accountant solution space is as healthy as ever,” Putt argues.

“MYOB has delivered, and continues to invest in, new generation product development.”

Company figures show MYOB spent A$100m on research and development over the last three and a half years to June 30, 2013, and last year alone, the business spent over A$30m on R&D.

With regards to the percentage of MYOB cloud licenses sold versus computer based, Putt says cloud solutions account for around half of all new product registrations across the country.