AdventGuru

Earlier this year, Advent sent an alert to Axys users about Windows 8 issues and how to deal with them, as an interim solution to problems that Windows 8 users can face.  It is good that Advent is proactively alerting users, but I am not recommending that any of my clients move to Windows 8 just yet. Upgrading your office to Windows 8 is premature, unless you are willing to pay the premium and deal with the frustrations typically associated with being an early adopter of the latest Windows operating system.

If your firm uses Axys, you may be wondering whether a new release is in the works. Though Advent hasn’t publicly set a release date for the next version yet, I expect they soon will. Based on what Advent has done in the past, users should expect a 3.9 release in the near future. That release will likely support Office 2013, and Adobe Acrobat 11, and may also feature improved Windows 8 compatibility.

Though these types of updates seem minimal, they have more substance than you might think. Axys remains a very functional and cost-efficient option for advisors. Compound reports generated in Axys 3.8.5 using Excel 2010 graphs rival output from APX at a fraction of the cost. If your compound reports look dated, find out what version of Excel you are using. Using the latest version of Excel in conjunction with a version of Axys that supports it can give your reports a newer look and feel.

Axys 4?

I would like to think that Axys 4 is in the works, but a major revision would probably mean a name change – perhaps “Cloud Axys?” Longer-term, expect Axys to undergo a technology transformation if Advent wants to keep the platform alive and decides to commit greater resources to future updates that keep pace with technology trends. While the number of APX, Geneva and Black Diamond users have continued to grow, Axys users still account for a considerable number of Advent’s clients.

Historically, Axys was the lynchpin of Advent Software’s success and center of their hub of solutions for their customers. Replacing the PMS of an investment advisor is more complicated than it seems.  It impacts many of the systems at an advisor’s office, as well as the people you need to support your business, the skills they need, and what third-party solutions are available.

It would be ideal for Advent if Axys customers moved to another Advent product in the future. Those conversions and newer software licensing agreements would generate more income, while eventually allowing Advent to phase out Axys without major renovations.  However, Axys users looking at APX, Black Diamond and Geneva don’t always see a clear path.

In the past two years, Tamarac/Envestnet and other competitors have won over some Axys customers. My firsthand knowledge of a couple of advisors who made the move to Tamarac leads me to believe that Advent didn’t need to lose these customers. Through better communication, negotiation or product positioning, they could have kept the business.  On that note, I spoke with an Axys user last week that requested an APX quote after seeing a demo in Q2 and never got one.

Perception is Reality

“Be where your enemy is not.” -Sun Tzu

Current Axys users represent a ground of contention that will not be ignored by Advent’s competitors and should not be ignored by Advent. At stake is the perception of who provides the very best PMS platforms for investment advisors.  Advent may be willing to let some of their Axys clients go quietly, but in doing so they risk losing those relationships long-term, if not permanently, as well as other advisors in their sphere of influence.  Axys users represent a critical mass that could fuel the growth of  Advent’s competition in the near future.  Left unchecked, Advent competitors garnering Axys users now could ultimately vie for current APX, Geneva, and Black Diamond users down the road.

Obviously, Advent cannot be all things to all customers, but they can make a better effort to keep existing Axys clients in the fold.  In order to do so, Advent must improve communications with Axys users, affirm their commitment to Axys, and continue to add technology enhancements to Axys on a regular basis.

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About the Author: Kevin Shea is President of InfoSystems Integrated, Inc. (ISI); ISI provides a wide variety of outsourced IT solutions to investment advisors nationwide.

For details, please visit isitc.com, contact Kevin Shea via phone at 617-720-3400 x202 or e-mail at kshea@isitc.com.