Arcadia, a joint venture between the Japanese and Australian offices of consolidated holding company Itochu, has launched a set of applications available over the Internet for channel partners to on-sell to the small business market.
The eight-employee Australian operation, which is 66 per cent owned by Itochu Australia and 44 per cent owned by Itochu Japan, is pitching a Web-based suite of office and business applications at the SME market by signing up resellers.
This business model is already producing moderate levels of success for former Solution 6 team Cavillon, which is serving around 1200 seats within its first few months of operation, as well as similar successes for Melbourne-based system integrator-cum-ASP Express Apps.
The product is called MyOHQ.com and consists of personal tools such as e-mail, calendaring, contact and document management tools, Web site creation and marketing tools, as well as business tools for human resources, sales and procurement.
Business development manager Nick Brown was unable to disclose how many resellers the ASP has signed up thus far, except to say there were "several" and they mainly consisted of PC and network solutions resellers. "We are looking for resellers with a good customer base in the SME market," he said. "This customer base is something Arcadia doesn't have the resources to market itself to."
"There is a lot of potential for Internet service providers to reduce their customer churn by adding value to their service, and there is potential for traditional resellers to create the recurring revenue streams that ISPs enjoy," he said.
Tony Tsuji, general manager of Arcadia, expects 2000 customers to subscribe to the service within 12 months, generating over $1.8 million in revenues.
Brown said the software has been trialled and tested, and is market-ready after being promoted through Asia in recent months. At the same time, he does not expect such tools to ever replace the popular office and accounting tools currently sitting on the desktop of most Australian small businesses.
"We are not competing with things an SME already has, like Microsoft Office, MYOB or Quicken," he said. "We are adding additional functionality over and above what they already have on their hard drive."