Menu
Big guns toppled as Xero takes on SAP in NZ ERP market

Big guns toppled as Xero takes on SAP in NZ ERP market

“The local ERP market has been widely disrupted by Xero..."

Growing Kiwi accounting software firm, Xero, has overtaken SAP to become the largest vendor in the Financial Application software market in 2014, taking the top spot in this sub-market segment as it continues to challenge traditional vendors in the broader ERP market in terms of market share.

According to IDC’s Asia Pacific Semiannual Software Tracker (2H 214), the New Zealand software market grew by 6.5 percent YoY in 2014, close to IDC’s predicted 6.6 percent forecast from mid 2014.

Continuing this trend, the market is set to grow by a five year compound annual growth rate (CAGR) of 6.5 percent to reach NZ$1,791 million in 2019.

According to IDC findings, the ERP market was the major growth engine for the New Zealand software market in 2014.

Mainly driven by Cloud solutions, the Financial Application and Human Capital Management market (HCM) grew by 29.8 percent and 25.9 percent respectively in 2H14.

Although only offering Financial Application software in New Zealand, Xero overtook the market leader SAP in terms of market share.

“The local ERP market has been widely disrupted by Xero, which is driving most of the growth in the local ERP market,” says Melanie Disse, Market Analyst for A/NZ Software & Analytics, IDC.

“Although Xero only offered Financial Applications in New Zealand, so far, it managed to sneak up to the top of the New Zealand ERP market.

“It will be interesting to watch what is going to happened in 2015 when Xero starts offering Payroll Applications and Inventory functionalities in New Zealand.”

Disse says the Financial Applications market also shows the highest five-year-CAGR within the ERP market in New Zealand.

With a five-year CAGR of 10.0 percent, the Financial Applications market will remain the largest sub-market within the ERP market, larger than the rest of the ERP sub-markets combined.

Growth also occurred in the Application Development & Deployment (AD&D) Software market, which grew by 3.1 per cent YoY in 2014 driven mainly by Big Data & Analytics technologies.

According to Disse, this in turn fuelled the Data Access, Analysis and Delivery (DAAD) and Structured Data Management Software (SDMS) markets with 5.4 percent and 5.2 percent YoY growth respectively.

Within the Infrastructure Software market, growth was mainly driven by the Storage and System Management Software markets, 11.4 percent and 8.9 percent respectively in 2H14.

Please note - This story has been updated as of 12:55pm (Wednesday June 17, 2015).

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags xeroMYOBIDCMicrosoftSAPERP

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments