TechnologyOne reported major headway moving its back office and enterprise software suite to the cloud as the company released results for the financial half-year ending 31 March.
Cloud was a major focus of research and development expenses totalling $17.2 million, which was up 4 per cent compared to the same period last year. The company expects R&D to be up 4 per cent for the full year as well, it said.
TechnologyOne reported "significant progress" optimising its enterprise software suite for the cloud. In addition, the company has commissioned data centres in Sydney and entered a partnership with a global infrastructure-as-a-service provider to provide underlying technology and hardware.
"TechnologyOne will take responsibility to provide the processing power, software and services including backup, recovery, upgrade and support services for our cloud customers," TechnologyOne's executive chairman, Adrian Di Marco, wrote in the company's half-year report.
"This will provide what is essentially a very simple, cost effective and highly scalable model of computing. Customers will simply sign in to get enterprise software as a service."
To prove the platform, TechnologyOne has been running its own corporate back office and R&D functions on the cloud for nine months.
"Over the next nine months we plan to move the last pieces of our operations, our consulting practice and presale functions, to the cloud," wrote Di Marco. "This will see no hardware owned or operated by TechnologyOne and will make us one of the most advanced adopters of cloud computing in the world."
The company is already seeing cost savings and other benefits from the move to the cloud, he said. "The savings and efficiencies we will achieve will be significant in the coming years."
In addition, TechnologyOne has started to bring early adopter customers onto the cloud platform.
"The pipeline for our Cloud services is building strongly," Di Marco said. "We expect the TechnologyOne Cloud to become another major platform for growth in the coming years."
In its half-year results, TechnologyOne reported $10.9 million in net profit before tax, an increase of 17 per cent compared to the same period last year. Revenue increased 3 per cent year-over-year to $79.7 million.
"We expect our existing enterprise suite to maintain strong performance in the coming years, a success based on the significant benefits associated with our preconfigured solutions, which reduce the time, effort, costs and risks associated with enterprise implementations," said Di Marco.
TechnologyOne revealed last year that it had turned its staff recruiting focus to graduates to reduce the company's "baggage".
"When you bring people in that are much more senior, they bring a lot of ... baggage with them and it's hard to mould them into a culture," Di Marco told Computerworld Australia. When you're a small business and you can't make that investment, then you have to do that."
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