News and Analysis

News and Analysis (15703)

FRESHBOOKS RAISES $30M FROM VCS

FreshBooksFreshBooks says it has raised $30 million in what it terms its first institutional venture capital round. And given Xero’s fundraising and plans for a IPO in the United States, it shows how eagerly investors are willing to bet on the low-end, online accounting marketing. You may remember that earlier this year, Paychex made an investment of undisclosed size in Kashoo. The funds raised by FreshBooks will be used to fuel growth, including the expansion of its work force from 150 to 400 by 2016. The round was led by Oak Investment Partners with participation from Atlas Venture and Georgian Partners.

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NETSUITE READYING NEW INTERFACE

Zach NelsonAnd yeah, yeah, it was a good quarter, but the big news from this week’s quarterly earnings webcast was that NetSuite will introduce a new user interface in 2014. “Later this year, we plan on rolling out our next generation interface,” said CEO Zach Nelson. “It will make NetSuite the easiest and most enjoyable business application to use anywhere.” The other thing notable was it seemed Nelson might avoid taking a whack at the competition. But what a relief, at 40.04 minutes into a 50.40-minute long event, Nelson talked about when companies are “ready to upgrade out their legacy stone age SAP or Sage implementation”.

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XERO PLANS U.S. IPO

 Peter Karpas, Xero North AmericaCloud accounting company Xero plans an initial public offering in the United States for the year ending March 31, 2015. The company raised $150 million in capital late in 2013, largely from American investors, and you'd think these folks want their money back at some point. Xero is already public in Australia and New Zealand. With the company moving into an offering and the sensitivity involved in such endeavors, I was not surprised when an offered interview with Peter Karpas, CEO of Xero North America, did not produce a lot of new news.

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MICROSOFT'S NADELLA: DIFFERENT STYLE

Satya Nadella, MicrosoftMicrosoft did its usual and reported a gazillion dollars in results for the year ended June 30. But that is not the most interest thing about the earnings webcast for the fiscal 2014 results. The thing that stood out is that CEO Satya Nadella participated in the event. And you may not think this is special – after all don’t CEOs take part in the earnings presentations? In the overwhelming number of cases, that’s true. But in Microsoft’s, it hasn’t been the practice. If former CEO Steve Ballmer was on any of the calls, I don’t remember and I started listening to them after the purchase of Great Plains in 2001, back when Bill Gates was CEO.

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SAGE THIRD QUARTER SOFTER

Guy Berruyer, SageNo, the company didn’t phrase it this way. But Sage’s organic revenue growth for the nine months ended June 30 was 4.7 percent over the prior year and the rate was 4.3 percent for the most recently ended quarter, Sage said this week. The company expects business to pick up in the fourth quarter and to close fiscal 2014 with 6 percent-organic revenue growth. Lame duck CEO Guy Berruyer said in the company’s  interim management statement that “We remain confident of achieving our target of 6-percent organic revenue growth in 2015.”

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PAYMENTS HEAD LEAVES SAGE

Christine Scappa, SageGreg Hammermaster, who led Sage Payment Solutions for the last five years, has left the company. Christine Scappa, a 14-year Sage veteran led a briefing this week as acting president of the group. Her LinkedIn page shows her as SVP of Sage Payment Solutions while Hammermaster’s does not reflect a change in the position he held from October 2008. However, Sage public relations confirmed that he "left Sage a few weeks ago."

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EXACT SELLING LOHN TO SAGE

Erik van der Meijden, ExactExact continues to clean house with the announcement it will sell Lohn, its Germany-based payroll business to Sage. I said earlier this month that I would be surprised, after the company had decided to dump Longview, if it sold its manufacturing packages but that "Lohn is another story." Lohn just didn’t fit with the its other packages in the Specialized Solutions division, which are three American Manufacturing packages, Macola, Max and JobBoss.

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MICROSOFT WORKS CLOUD INTO CHANNEL

Neil Holloway, Microsoft Microsoft says it is integrating into cloud technology into the partner channel, including Dynamics. (And oh yeah, there is that thing about laying off 18,000 people. But until it affects Dynamics, it’s only something to view from afar). This included some steps disclosed at this week’s Worldwide Partner Conference. Laying aside Microsoft’s enthusiasm about its own moves, I’m not sensing a wave of excitement among resellers. But maybe that will change. Among the changes are enhancements to the Readiness Partner Program that Microsoft says it is making to  “increase partner capability, address partner capacity and bring down the cost of training.”

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VERTEX OFFERING VARS 25 PERCENT

Alex Solomon, Net@WorkVertex is paying resellers 25-percent commission on sales for the life of those clients that sign up for the Vertex SMB sales tax application. The company, which had been a quiet player in the market until recently, is busy recruiting a channel and aims to use a pay-as-you-go model with no upfront cost to reach small and mid-market businesses. “We are looking at the partners and VAR community as a our primary distribution channel, looking to pay them recurring revenue in perpetuity as clients come  board,” says Bradd Wildstein, director of channel sales. The company had previously announced the signing of McGladrey and Cargas Systems.

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EXACT GETS TAKEOVER BIDS

exactExact Holdings has said it has been approached by parties that want to buy all outstanding shares of the ERP software company that is based in Delft, The Netherlands. The company said the prices offered range between 30 to 35 euros per share. The company says it is in engaged in preliminary discussions. There’s not much more that we are likely to learn from Exact until something does, or officially doesn’t happen, with any of the bids. But given the continuing activity of private equity firms, it’s not surprising.

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