By Tim Ferguson, 28 April 2009 13:05
NEWS
UK software maker Sage will continue to expand its cloud offerings to cater to the Facebook generation, despite the current low take-up of such apps.
Sage is planning to launch additional applications that can be delivered via the web in the coming year or so according to the company's chief executive, Paul Walker.
Sage already has several hosted applications and despite "relatively modest" demand for cloud apps, Walker said the company will invest further in this kind of technology.
"We will continue to invest in [existing cloud products] and expand those over the next 18 months but you will see more from Sage over that period," he said.
With around 15,000 of Sage's 5.7 million customers currently using online software, cloud computing isn't something that's generating much revenue for the company yet.
"We can't take our eye off the ball - we still have 5.7 million customers today on desktop solutions so we have to satisfy both of those markets and that's very important for our business," Walker said.
"In two or three years time I'd be very surprised if 50 to 60 per cent of our customers were on those type of [cloud] solutions but it could be more like 15 or 20 per cent," he added.
Walker said greater adoption of online computing is a natural development due to the spread of broadband and the influx of workers who have "lived through the online world".
"New businesses coming into the market - particularly people who are used to Facebook, used to the web world - as they start businesses they will clearly think more about online solutions - cloud computing - and so our job is to make sure we've got products for that set of people," Walker told silicon.com.
Cloud computing could also prove a way for Sage to break into emerging markets such as China, India and South America.
"The online solutions in those markets are probably the way we'll try and enter because in a way you can imagine a lot of new businesses starting off in that area are much more likely to want cloud computing than going the traditional desktop route which has been embedded into the European and North American markets," Walker said.
Check back later for a full Q&A with Paul Walker this week
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