Home-growing accounting software company Xero has signed on to Telecom's online small business hub, launched last month.

Telecom head of business marketing Victoria Crone says Xero becomes the telco's first SaaS (software-as-a-service) partner, and there is "no doubt Xero is the leading SaaS provider in New Zealand." (Xero's key competitor, MYOB, recently launched a SaaS version of its product).

SasS products run on the internet, store and share all their data over the internet, and can be accessed from any PC or smartphone.
Telecom will get a commission on sales, Ms Crone says.

For his company's part, Xero CEO Rod Dury says his product will get the mass exposure he's been seeking in the small business market.

Mr Drury says banks and telcos are the best way for his software-as-a-service online accounting product to be distributed. He would not say how many small business customers he was targeting through the new arrangement beyond the catch-all "all of them".

Xero recently racked up its 2000th paying customer, pushing its product mainly through partnerships with all the major banks.

However, unlike other Telecom Small Business Hub products, Xero customers will not be able to pay for their service on their Telecom phone bill. Crone says that convenience will be added, plus more billing and service integration between the two companies. For now, Crone describes the partnership primarily as a "deep marketing relationship". She says Telecom will be heavily promoting the new service.

Telecom head of business marketing Victoria Crone says many small businesspeople often have a low level of financial literacy, which Xero will help address.

Ms Crone says other SaaS partnerships will follow.

Xero will appear on Telecom's hub from mid-November, with a 60-day free trial offer. Those who download Xero from Xero.com now get a 30-day trial.