From Xero to $3 Billion In 7 Years

Rod Dury, an already successful entrepreneur with two booming companies wanted more in his resume. While looking for something new to feed his hunger, he and his friend Hamish Edwards decided to build a software company. Not just any software firm, but an accounting software company that would go on to make a fortune. Business software unlike consumer technology had not adopted a web-based approach back then, and this was the opening Dury and his friend was looking for. In 2006, they founded Xero, an online cloud-based accounting company that would revolutionize the way small businesses operated. Xero’s cloud solution integrated a wide variety of add-on tools, from timesheets to invoicing and payroll. The company is currently valued at $3 billion and is fast growing.

Low-End Disruptions

To really see the big picture here, you have to take a step backwards. Prior to cloud and web-based approaches, software products and tools were bought in as complete packages. The software company would then provide additional features and add-ons to the application as and when the company expands through partnerships and acquisitions. Neither was this cost effective for the consumer nor did it offer the flexibility which the end-user needed. Cloud technology on the other hand works differently, usually to the benefit of the user. Cloud presents the developers with an API (Application Programming Interface) which they can then make use of to tailor-make the product to suit their needs, thus being more beneficial than traditional complete package software products.

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