Kelvin has an excellent commentary on Xero, NZs own online accounting provider. I suspect Xero will have some very big problems this financial year, but all power to them! My major concern is simply the burn rate, and the fact that the Xero model relies on SMEs and SME accounting service providers converting to Xero. This appears to me to be a low speed model of acquiring customers, basically organic growth. Now this strategy is fine, if you have enough money to survive until customer numbers reach breakeven point. My suspicion is Xero doesn’t.
Xero is awesome. Its a fantastic piece of software, super-easy and very useful, and everyone should be using it. I just hope Xero has enough time to enlighten the world to its superiority.
