International accounting software vendors will soon feel the effect of the plummeting rand as local businesses consider cheaper options. Software prices have already increased by 40% and will continue to rise as the rand weakens. By Staff Writer
This is the time for locally owned accounting software companies to shine, says Stephen Corrigan, MD of Palladium Business Solutions, a local company offering tailor-made business solutions to businesses throughout Africa.
“We are experiencing a huge interest from companies that previously looked at dollar-based products. They all just went up 40% in price, no wonder they are calling us,” says Corrigan.
“The weakening of the rand will be the cause of price increases across the board. At Palladium, we reduced our international pricing accordingly and have seen an upsurge in demand. We need to take advantage of the weakening rand.”
Corrigan says this is also a good time for companies to retire their aging costly enterprise software. “To have a rand hedged product in today’s environment is critical. The modern way of thinking is a ‘pay as you go’ or subscription model with no upfront balloon payments.”
Palladium offers a subscription model as well as a software purchase model with an optional support contract, giving its clients options. In addition, clients can switch from the subscription model to the outright purchase model at any time, and will receive up to three months of their subscription fees back against the software purchase cost.
“We also offer clients the ability to request features that we will charge a nominal fee to develop, then just include this into the main application for all customers to benefit from. This has resulted in us having some truly radical features that we would possibly never have considered through the traditional route, all at rand-based rates,” he concludes.