The assets of e-procurement software developer Streamlink are likely to be sold off after directors placed it into administration on Friday.
Founder and executive director Martin Fisk said the company was placed into administration due to poor trading conditions over the past 12 months and difficulty in raising capital. Fisk said two companies were looking at buying and restructuring the business.
Fisk painted a grim picture for Australian software developers when announcing the decision, claiming as long as corporate users keep relying on global consultants and research firms for advice, organisations will continue to shy away from locally developed software.
"My fear is that the Australian software industry may go down the same path as the Australian hardware industry," he said. "We are probably one of the few developed nations that actually reduced its software production in the last five years."
Fisk told ARN he had many discussions with Government officials regarding the future of software development in Australia and believes their strategy is flawed. "The one thing that they could do is [to] forget the grants," he said. "Government hand-outs will only propagate weak companies. The only reason we survived for eight years is because we never once took a Government grant."
Instead, Fisk suggests Governments should buy locally developed software themselves, aid the developer with feedback on the products and give the developer a starting point for building up customer references.
"When the Government gives out a grant, the developer gets paid to sit there in isolation," he said. "What the Government needs to do is buy the stuff. The Government needs to give Australian software companies, customers. It provides them with a little bit of funding, but more importantly [what is needed is] a real life situation to battle-test the software."