Less Than 50% of South African SMEs use Cloud Applications and Simple CRM

But Web-based CRM Proves Most Popular Cloud Application With SMEs

LONDON, September 20, 2010 - A recent survey conducted by
AdvanceNet - www.advancenet.co.za - Africa's leading simple CRM
(www.reallysimplesystems.com/simple_crm.asp) provider, has revealed
that half as many South African SMEs use Cloud CRM systems compared with the
rest of the world. The Survey, carried out in conjunction with Really Simple
Systems - www.reallysimplesystems.com - one of the world's largest
web-based CRM (www.reallysimplesystems.com/simple_crm.asp#crmhosted)
vendors, showed that Cloud CRM systems (
www.advancenet.co.za/index.php?option=com_content&view=article&id=72&Itemid=64)
only account for 15 percent of the cloud applications used by South
African SMEs. The survey questioned SME business owners, directors, sales,
marketing and IT managers, on their views of Cloud Applications and the
reliability of the products currently available in the market, and then
compared the results with similar global surveys.

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

From a sample of 272 respondents, primarily from small and
medium-sized organisations with less than 250 employees, 53 percent reported
increased confidence in Cloud applications in the last 12 months. This is
mirrored by the 56 percent who agreed that Cloud applications have been made
a more attractive proposition by the current state of the economy.

Phil Hemsley, managing director of AdvanceNet, adds, "Although
this survey shows that African companies are more cautious about Cloud
applications than their international counterparts, we believe that the same
advantages of ease of use, rapid implementation and low cost will drive user
adoption of simple CRM over the next year."

The results of this survey, coupled with findings from
web-based CRM provider Really Simple Systems' previous global survey, have
together shown a similarity in responses covering two main factors in
relation to Cloud systems. Respondents from both surveys agreed that Cloud
systems require less IT support and that almost all SMEs would be spending as
much, if not more on IT in the coming 12 months.

In South Africa, Cloud-based systems are less trusted with 40
percent more SMEs believing they were unreliable and some 37 percent of
respondents considering that their data was less secure with Cloud
applications. Furthermore only 34 percent consider Cloud applications to be
better value when compared to the 43 percent shown in the global survey.

Globally, Cloud CRM Systems have almost completely caught up
with in-house CRM for SMEs, with 41 percent of respondents now using
web-based CRM as opposed to 42 percent using in-house CRM. 58 percent of
South Africans SMEs however, are using in-house systems compared with just 15
percent using cloud-based applications.

The number of respondents not using any CRM system in South
Africa stands at 30.7 percent, twice as high when compared with the rest of
the world. Hemsley adds "Although there are still a lot of SMEs yet to
realise the benefits of a simple CRM system, I do not think this should be of
particular concern to SME vendors looking to operate in the South African
Market. We have seen interest pick up markedly in the last couple of years
and I look forward to seeing the results of this survey when we run it again
in a year's time."

Finally, the research showed that 50 percent of those
questioned planned to spend more on IT in the next 12 months than they had
done over the last 12 months, compared with 37 percent in the rest of the
world. John Paterson, CEO of Really Simple Systems, concludes, "It is
encouraging to see that SMEs in South Africa see the value of investing in IT
to move the company forward, despite the economic instability that has
affected spend on business resources in the last few years."

About AdvanceNet

AdvanceNet is Africa's leading IT solutions provider
delivering Infrastructure Solutions, Financial Management Solutions, Customer
Relationship Management Solutions, Performance Management Solutions and
Mobility Management Solutions. In business for over 20 years, AdvanceNet has
developed into a mature, multi-faceted company offering sophisticated
business solutions throughout Africa. This ability to deliver measurable
business value is what makes AdvanceNet's offering more than simply a
comprehensive suite of excellent software, hardware and network
infrastructure products.

About Really Simple Systems

Really Simple Systems Hosted CRM is aimed at small and medium
sized organisations with between 5 and 200 people who want a simple CRM
sales, marketing and support system. The Cloud CRM Systems model is
particularly suitable for companies with multiple locations and sales people
who work remotely or at home. Really Simple Systems, nominated for the 2010
Software Satisfaction Award and winner of the award in 2008, is the largest
United Kingdom provider of web-based CRM systems with offices in the UK,
North America and Australia. Users include the Royal Academy of Arts, the
British Library, the Red Cross, NHS and the Department of Health as well as
many small and medium sized companies.

    For further information, please contact:
    John Paterson
    Really Simple Systems
    Tel +44(0)1730-823300
    Max Deeley / Krista Le Beau
    itpr
    Tel +44(0)1932-578-800

For further information, please contact: John Paterson, Really Simple Systems, Tel +44(0)1730-823300, Max Deeley / Krista Le Beau, itpr, Tel +44(0)1932-578-800