The Electronic Communications Act and the new Privacy Bill makes it imperative to have trusted, secure digital communications. Law Holdings is one company poised to make a killing in keeping its customers out of trouble. In a bid to grow beyond its sugar-centric client base, cash-flush InfoWave, a niche software developer from Durban, seeks out like-minded niche software developers TURNING OVER R60 million a year from property-related tech services to SA`s legal and banking fraternities, Law Holdings is already doing great business. Executive director and former attorney Trevor Coppen says Law`s main offering secures bond registrations between attorneys and banks through digital IDs in a secure, hosted environment.

But Coppen is looking much further than this. In recent weeks Law launched in the UK and Ireland, countries that he says are "far behind" SA in their use of electronic workflow in the property industry. His vision is to broaden the application of the service, both beyond bond applications, and beyond the legal and banking sectors.

Law has also launched Lawtrust, one of only two trusted third-party service providers in SA. Headed by Christi Peens, it provides secure digital certificates to organisations and their employees, and has developed a service whereby digital documents can be signed online. Lawtrust has partnered with a Norwegian vendor to provide secure messaging, integrated with Microsoft Outlook, to be launched as Trust Messenger in July.

FASTER, FURTHER, BROADER

Having proved its mettle in property, Law is ready to move on. Coppen says the ECT Act of 2002 and the new Privacy Bill represent immense opportunities as organisations move into a secure digital world, given shape and sanction by the Acts.

Law`s attorney-to-banks platform has recently started interfacing with municipalities too, to expedite applications like checking the rates status on a property. Over the past year, all three major municipalities - Cape Town, Johannesburg and Durban - have come on board. "Our record - in Cape Town - was five minutes and eleven seconds, from application for the rates clearance certificate to getting it," laughs Coppen. Though perhaps a freak accident, his point is clear - efficiencies are to be had. "The next link is to effect electronic payment of rates assessments and receipt of clearance certificates." Law has successfully developed an interface with SAP for the Cape Town City Council - a model it hopes will be adopted by other municipalities.

Ultimately, Coppen wants the Deeds Office to come on board. "There are many logistical complexities, but we`re in constant discussion," he says. "Whatever they eventually decide, we`ll be able to interface. Property registration, currently taking ninety days, will be almost instantaneous."

The Deeds Office currently completes 40 000 property registrations monthly. Without digital efficiencies, the ever-growing volumes are not future-proof. Banks are under additional obligation to lend R80 billion to the low end of the housing market, where costs are high. The potential efficiencies from a secure electronic platform are the stuff that dreams are made of, not only for Law, but for lenders, consumers and government.

GOVERN WISELY

As regards the governance prescriptions of the ECT Act and codes like King 2, Law provides an indispensable service. For the 600 000 to 700 000 messages per month it switches between clients, it can prove content, time and date of origination and delivery. For banks this means they can manage their loans pipeline, as well as delays and other attorney failures in a transparent, rights-managed environment. The Law platform features an XML interface with customers` systems, and while it integrates directly into banks` mainframes and legal software like LegalPerfect, the move is towards browser-based transparency and tamper-free communication.

Law`s platform, at heart a trusted virtual private network connection between the parties served, and an application giving life to these functionalities, hosted at Internet Solutions` data centre, operates nationwide. The network infrastructure is hosted by IS in Rosebank, Johannesburg, with the redundancy infrastructure housed at New Doornfontein. Switchover can happen in 23 minutes.

WHILE REVENUE from its staple client, the sugar industry, may be sweet, Durban-based niche software supplier InfoWave is looking to further diversify its offering.

Following the announcement of some solid results for the year ended 28 February 2006, with revenues up 8% on last year to R34.4 million, CEO Tiffany Dunsdon indicates that the company is now sitting on a cash pile of some R7 million.

And, while InfoWave is still bedding down its March acquisition of ApplyIT, itself a niche process software supplier and a Microsoft-certified partner, it is already in exploratory discussions with one or two acquisition targets.

"It is possible that we will announce another acquisition this year, but it isn`t probable - we`re very selective when it comes to acquisitions," elaborates Dunsdon.

While there are no specific `gaps` in its offering, so to speak, the company values niche software providers bringing a well-established client base, annuity income and a high degree of differentiation from similar commodity products to the table, above all else when considering potential acquisitions, she reveals.

"Generally we consider smaller IT companies which have grown to a certain point and don`t know what to do next. Their offering must be `productised`, and their management experienced such that they fit in well as part of a JSE-listed group, like ourselves," explains Dunsdon.

SUGAR DRIVE

The lion`s share of InfoWave`s revenue is currently accounted for by the implementation and support of its Tranquillity financial applications and CaneLab, tailor-made for the sugar processing industry both at home and abroad.

Dunsdon indicates that the solutions are so unique that the company has no head-on competition from any other niche industry solution, either local or global, although there are ERP solutions that have been customised for sugar producers.

InfoWave supplies its software and services to the Illovo group and all its foreign operations, including those in Malawi, Mozambique, Swaziland, Tanzania and Zambia; the SA Cane Growers` Association, the SA Sugar Association, the Swaziland Sugar Association and the Royal Swazi Sugar Corporation (Mhlume), both in Swaziland; Hippo Valley Estate in Zimbabwe; and US client Raceland Raw Sugar Corporation.

Incidentally, the Illovo group this year renewed its application and integration outsource service contract with InfoWave for a further six years.

Although revenue from the sugar division, as it is known, fluctuates depending on projects undertaken within a given period, it accounts for the "significant majority" of InfoWave`s revenue, says Dunsdon.

Other divisions provide custom-built software services and general IT support services.

InfoWave also recently formed InfraSoft with black partner Senzokuhle Investments. The new company focuses on the marketing of DevMan property management software, for the delivery of housing and infrastructure projects in the public sector.

CLIENT BASE SYNERGY

Meanwhile, the acquisition of ApplyIT provides InfoWave with a new range of products to manage safety, health, the environment and quality (SHEQ), plant maintenance and operations in the manufacturing sector. The blue-chip customers ApplyIT brings with it include Samancor Manganese (BHP Billiton group), Mondi Shanduka Newsprint, AECI, Clover and Blendcor.

"In addition to the obvious synergy between our client bases, other benefits of the acquisition include added annuity income. We aim for long-term customer relationships which allows us to apply a long-term support model, and the same goes for ApplyIT," she explains.

Moreover, the acquisition allows InfoWave, which has traditionally built its offerings on Oracle and Java technology, to broaden its technology platforms to include Microsoft.

"One month into the acquisition, ApplyIT had a near record performance," says Dunsdon. "This proves that the acquisition was a positive move for both companies," she maintains.

Worth noting is that InfoWave originally bought 73.8% of ApplyIT, and immediately on-sold 10% of this stake on to black shareholders. As a result, ApplyIT is currently 26% black owned, while InfoWave as a group is 25% black-owned.

Dunsdon cites employee share participation as a significant success factor for the group. "55% of our business is held by employees and directors, resulting in greater employee retention, buy-in and performance," she notes.

"Our employee equity ratio is also a significant achievement considering the skills level of our IT specialists." More than 60% of its employees, many of whom are programmers and technical specialists, are black.

"There is currently a very buoyant labour market, and we`re not immune to it - we lose qualified staff all the time, but judging by what we`ve achieved so far, we`re a good place for equity employees to be," maintains Dunsdon.