Published on the 20/01/2016 | Written by Donovan Jackson

With the announcement that its N2 ERP solution now integrates with Xero, First Software said it is looking to make it easier for growing businesses to make the transition from accounting software to full blown ERP. In a chat with iStart, First Software GM Alex Petraska said the integration is somewhat unique, because companies which go from Xero to N2 will continue using Xero’s general ledger and bank reconciliation features, while gaining access to the modules of the ERP solution.

“This development really brings N2 to a far bigger market, initially in New Zealand, but also potentially in other territories where Xero operates. We believe that among the millions of clients using Xero, there are a lot which are ready to migrate to a more complete business management system,” he explained.

The advantage for those potential clients, added Petraska, is that getting functionality across procurement, inventory, ecommerce, Point of Sale and CRM can all be done within a single solution, rather than through the combination of three, four or more vendors. “When you’re stitching together multiple Xero Marketplace products, you’re dealing with multiple integrations, multiple support providers and multiple user communities,” he said, “and that can get complicated.”

Petraska added that before it gets on to the Xero Add-On Marketplace, First Software has to sign up five customers. “We’ve already got the first and that’s always the hardest. There are more in the works, including a large franchise; if we get that one on board, we’ll have the five and then we’ll be visible to a far greater market.”

Agreeing that there is a considerable opportunity in the ‘around 5 users’ space in New Zealand, Petraska also conceded that reaching this market is difficult. “They know they need something more complete, particularly when they see the product – but they’re not necessarily up [to speed] with the terminology [like ERP] used in bigger businesses.”