TechnologyOne has reported a 17 percent uplift in net profit before tax for the half year ending 31 March 2014, putting the company on track to deliver 10 to 15 percent growth for the full year.
The company also reported that annual licence fees grew by 13 percent, while initial licence fees grew 24 percent in the half year.
The company signed a number of customers in the first half of the year, including Catholic Education Victoria, OneCare Limited, and Auckland University of Technology.
Executive chairman Adrian Di Marco said the next generation of the company's Ci product range, Ci Anywhere, provided a platform for continued strong growth in licence fees in future years.
During the first half, the company announced it had committed AU$80 million so far in creating its enterprise cloud offering.
Di Marco said the TechnologyOne Cloud, which delivers the TechnologyOne Ci Enterprise Suite as a service to customers, would also become a major new platform for growth.
"Cloud computing has become the next gold rush in the IT industry, with many IT companies attempting to cash in on the cloud bandwagon. Of particular concern are the cloud hosting providers," he said.
"Cloud hosting should be seen as the last resort, because it is limited in what it can realistically offer. Cloud hosting providers adopt a 'lift and shift' approach, simply installing software in the cloud.
"On the other hand, software as a service sees the company that builds the software, also run the software as a service for its customers. Software as a service, which is what Google, Facebook, Salesforce, and TechnologyOne offer, is the future of cloud computing."
Research and development continued to be a significant investment for TechnologyOne at AU$18.3 million for the half year, up six per cent. The company expects full year R&D expenses to be up 6 percent, which is below its 8 percent long-term target set in 2011.
The ongoing development of Ci Anywhere and the TechnologyOne Cloud will continue to be a significant focus for R&D over the coming years, the company said.