Partnering with giants

By Simon Young, November 2, 2007 @ 2:37 pm

Tuatara Management began with a focus on helping clients make the most of foreign exchange and interest rates. Over time, the company developed specific tools for the job.

It didn’t take long to realise they could offer not just their services but also their software to clients, making their ideas go further.

Now that software is set to become part of Microsoft’s Dynamics AX product suite. Thanks to licensing, Tuatara doesn’t have to sell its software outright; instead, the company gains a massive global distribution channel, while retaining the ability to sell directly to customers who don’t use Microsoft products.

Tuatara’s software, CNS treasury system, was commercialised in 2004. “We could license to companies that otherwise wouldn’t be able to trade with us,” says Tuatara director Hils Hunt. The software is offered as a monthly subscription (known as software as a service) and is meeting a strongly-felt need since it complies with international financial reporting standards.

As well as the Microsoft deal, Tuatara is facing another global licensing opportunity. Christchurch-based GeneralCable New Zealand saw potential in CNS, and recommended it to head office in Kentucky. “How do you get to the parents?” asks Hunt. “Through their kids.” It’s a strategy that’s worked for Tuatara; GeneralCable is now looking to roll out CNS worldwide.

Meanwhile, the Microsoft deal came about by accident. CNS had been designed to integrate with Axapta, a popular enterprise resource planning program that had since been bought by Microsoft and renamed Microsoft Dynamics AX.

“We were working with partners who were supporting Axapta for the client,” says Hunt. “They told us we should talk with Microsoft.” After presenting to Microsoft’s CFO Chris Liddell, back in New Zealand for a visit, the Tuatara team then went to a Microsoft conference in San Diego and “managed to meet the right guy”.

The ‘right guy’ is now Tuatara’s evangelist within Microsoft, but he took some persuading. “At first he didn’t even want to talk with us,” says Hunt. “People come to him with ideas all the time.” But as he learned more about CNS, he saw how relevant it is.

“His job is to bring compliance with international financial reporting standards into all Microsoft products,” says Hunt. “They could do it themselves, or just pick up our product and run with it.”

Microsoft wisely chose the latter. The licensing deal is still a work in progress, and Hunt says he’s not too fussed over the details, “as long as we get distribution”.

“We’ve done a lot of sales without Microsoft so far, but being distributed through them is really helpful,” he says. “Really helpful!”