Home Business IT Cloud Xero claims MYOB exodus swelling customer base

The managing director of cloud accounting company Xero has cast doubt on MYOB's claim to have the largest online user base in Australia, and says his company is attracting hundreds of users away from MYOB every week.

iTWire reported earlier today that Xero had claimed that its 120,000 Australian customers made it the leading online accounting solution in the country and that MYOB had responded with figures implying it could have more than a quarter of a million paying customers.

"It's not the first time we've seen MYOB take a very broad view," said Xero Australia managing director Chris Ridd, suggesting that MYOB's figures could include non-accounting products or services. These would include MYOB's Atlas web hosting operation.

Mr Ridd said Xero is signing up more than 400 new Australian customers per day. While 40% of them are adopting accounting software for the first time (ie, they are either new businesses or are switching from paper-based systems), most of the other 60% are former MYOB users.

"We continue to erode MYOB's market share in Australia," he claimed.

An MYOB spokesperson again declined to provide actual user numbers for the company's various cloud-based accounting products, saying "52% of all new MYOB product registrations in December 2013 were for cloud accounting, up from 25% in December 2012. MYOB has driven double digit growth through rapid client adoption of cloud solutions."

Mr Ridd suggested MYOB's lack of transparency in this matter was a result of the company being privately owned, whereas Xero is a listed company that is required to meet disclosure rules.


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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.






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