Property Software Holdings has been bought by online property giant Zoopla in a deal worth £75 million that will have massive business implications for Estate Agents and Property Management companies using software such as Vebra, Core and CFP.
The deal will see desktop systems Vebra, Core and CFP come under Zoopla alongside cloud based services Jupix and Alto.
Zoopla said the deal would “enable the enlarged group to offer agents in the UK property industry’s first end-to-end solution including software and CRM, digital marketing and market insight tools and further revenue opportunities”.
This will remove the need for estate agents and property management companies to have in-house servers to run sales and lettings software.
This opens up the possibility for estate agents and property management companies to move their IT infrastructure entirely to the cloud – experiencing all the business benefits of doing so.
Now property businesses who have already migrated other parts of their IT infrastructure (such as file sync and share, emails etc.) to the cloud can complete their transition away from an in-house setup by moving their line of business software to the cloud too.
What are the business implications?
Reducing the need for in-house servers has a significant impact on the costs of IT.
By moving property management systems and all other business IT services to the cloud, property companies would no longer have to shell out for expensive servers (potentially upwards of £15,000 each). These servers would also come with maintenance, licensing and running costs, and should ideally be replaced every 3 years.
Hosting these systems in the cloud effectively means that you rent space on a server in a data centre instead of purchasing that hardware to run in-house.
Scalability of Cloud Services Make them a Friend to Growing Businesses
Cloud systems are friendlier to businesses as they require operating expenses rather than a large capital expense. Operating expenses make budgeting easier and more predictable, The other advantage of cloud services is that they’re scalable so you only ever pay for what you need and it’s easy to bring on extra resources and drop them again.
As you only pay for the space and processing power that you require and use, you don’t under-utilise severs.
If you were purchasing the hardware yourself, you would have to plan 3-5 years ahead and purchase servers that could still support your processing and data storage needs in the future. If you’re a business with ambitions to grow, you would have to underutilise that hardware, paying more for more storage and processing power than you currently need because you might need it 18-24 months down the line.
Cloud services simply scale up and down with your business. If you suddenly require an extra two terabytes of space, or you’re bringing on 10 new staff who need access to your lettings software, you simply spin-up more resources from the data-centre and your monthly payment changes to reflect this,
What impact will this have for people working in these businesses?
With Property Management companies and Estate Agents now having the option to move their IT infrastructure entirely to the cloud, the possibility now opens up for a much more mobile workforce and the ability to set up satellite offices in new areas more effectively.
This will enable companies to drastically increase the range in which they work, accessing new markets and growing their businesses more quickly.
The possibility has now opened up to lower costs by moving people, as well as servers, out of expensive offices as it will now be possible to easily access lettings and sales software (along with files and email) from anywhere with a reliable internet connection.