Local software goes online

The rapid development of internet infrastructure and broadband mobile networks 3G are paving the way for a new trend of using software as an internet-based service in Viet Nam.

Last month, MISA Joint Stock Company (MISA SJC) in Ha Noi launched the new version of its popular accounting software for medium- and small-sized enterprises, MISA SME.net, including an online version that allows customers the use of software on the internet.

According to Nguyen Xuan Hoang, general director of MISA JSC, online software has many advantages over traditional software, which has to be installed on a computer.

Customers do not need to invest in a server – and related software like Windows Server.

In addition, the use of online software has reduced the number of IT technicians needed. Accounting work can be done at any time and anywhere with an internet connection.

Hoang said many customers of the company, especially companies with numerous branches, wanted to register to use an online version, even if they must pay a fee of VND1 million (US$ 52.91) for storing data on a server.

MISA also plans to launch online versions of customer relationship management (CRM) and Human Resources Management (HRM) software later this year.

Other software companies also are planning to join the trend. In May, a Ha Noi-based software company, StarSoft, launched its StarHRM, but only provides online subscription and does not sell software as a package.

Nguyen Tu Quang, general director of the internet security centre (BKIS), said in the past few years the company also had invested VND40 billion ($2.1 million) for infrastructure, mainly for data centres in an attempt to provide software as a service.

BKIS, which makes security software and e-gov’t solutions, also plans to provide e-Office and e-Gate as an online service by the end of this year.

Duong Tien Phong, general director of Starsoft, said this was the best time to provide software as a service. Internet speed in Viet Nam is now faster and coverage wider.

“With the appearance of 3G mobile networks, enterprises can access the internet any time, anywhere,” Phong said.

The economic crisis also has provided an advantage for online software because of its cost’ savings.

The concerns of security and dependence on the provider can be obstacles for business sales of online software when all information is stored on the provider’s server.

According to Quang, however, it is not a problem for enterprises. He said that online software was a growing trend in the world and enterprises should adapt to it.

In addition, providers will have to build data centres with strict security standards to guarantee their prestige.

With positive prospects of internet service, software enterprises feel confident in online software businesses.

Quang said within the next five years, half of software sales of BKIS would come from online software and the rate would rise to 90 per cent after 10 years.

Starsoft also hopes to have 300 customers registered to use StarHRM in 2010.

According to Phong, potential customers are medium- and small-sized enterprises that have a limited investment but have a need to apply modern technology in production and management.

Enterprises of this kind also have fewer worries about security as they entrust their data and information system to providers.

Quang predicted that within five years, at least 30 per cent of SMEs in Viet Nam with demand for IT applications would use online software. — VNS

Tags: Vietnam infotech, Vietnam IT sector, Vietnam software market