Tauranga could soon boast its own small slice of Silicon Valley, with a draft strategy to promote the growth of the ICT sector in the Bay of Plenty due out shortly.

Information Communication Technology is the latest sector to get attention under the Bay of Plenty Regional Council's economic development strategy ‘Bay of Connections' – following on from traditional areas of strength forestry, energy, logistics and high growth prospect aquaculture.

Silicon Avenue co-owner Dave Murray (left) and Industrial Sheetmetals owner Shane Eastergaard discuss Procision+ job management software which is being used in the workshop. Photo: Bruce Barnard.

Details of the strategy to fast-track the ICT sector are being finalised, but council research shows the technology sector could be worth $16 billion to the region over the next 20 years.

Priority One CEO Andrew Coker says there has been 'rapid” growth in the sector, which has seen the ICT cluster grown from 30 organisations to 200 since 2003 – with a lot of growth in software in the area's key industries including post-harvest management. He says the area's ultrafast broadband and lifestyle appeal lay the foundations for ongoing growth.

ICT strategy development group member Brett Roberts, chief executive of Tauranga-based Wharf 42, says the lifestyle appeal of Tauranga makes it an attractive place for many to set up ICT businesses but he believes the big benefits will come in marrying top technology with the region's natural competitive advantages.

'My personal view is ICT underpins business, it's a foundational thing and there is an opportunity to innovate in that space and help those businesses to amplify the work they are doing to achieve their results faster.”

Brett, who splits his time between Auckland and Tauranga, describes technology as an 'enabler” that will help businesses become more efficient and competitive, and believes the focus needs to be on fostering ICT in these areas – rather than on building up stand-alone IT companies.

'Over time this will build up the number of IT jobs and businesses in the region will grow, but focussing on growing IT for ITs sake is not the answer.”

Regional council Bay of Connections' coordinator Cheryl MacGregor says the ICT strategy was 'a few weeks away” from being finalised.

The growth in cloud computing, with software accessed directly off a web-based cloud rather than installed on computers, is one of the major trends enabling Western Bay companies to compete against businesses in the main cites and overseas.

Two years ago Silicon Avenue director and chief operating officer Dave Murray joined forces with fellow Otumoetai College old boy Kevin Mann to build a better project management software system.

They set the business up here because its where they wanted to live after returning from working overseas - and the rapid growth in cloud computing has allowed them to compete as well here as anywhere.

'The traditional downside to being based in Tauranga is that you are away from the market. But for a company that sells our product from the cloud Tauranga starts to look attractive as a place to be based because everyone wants to live here.”

The company's Procision+ project management and job-tracking system, which is available as an add-on for Xero business accounting software clients, has attracted hundreds of clients in New Zealand and overseas since it was launched six months ago.

Dave says staff is the top challenge for businesses in Tauranga, but says the company has attracted engineers from Auckland wanting out of the rate race.

'It is still quite a small number of companies that are doing IT in Tauranga – particularly for product development, but when it reaches a critical mass it will be a bit easier to get staff, a bit easier to have meetings and organise infrastructure and everything. Until it reaches that point it will be a bit harder being from here.”

Company ‘technology evangelist' Rory Birbeck – one of about 10 local staff – says the software's unique features that include the ability to get an instant picture of the profitability of all jobs was leading many customers to become ardent fans. Rory says the main key to building up its sales was to follow in Xero's slipstream and get as high up the Xero add-in list as possible.

Dave explains the simple operation and seamless integration with Xero's accounting software has attracted a diverse bunch of clients around the globe 'who love how it's giving them their weekends back” instead of spending it in paperwork.

'We have some pretty random customers. We have an IT consultancy in Canada who supplies IT to mines, we're inside Hollywood with some film companies, all sorts of weird and wonderful companies.”

Dave says the company's focus is on small business clients that either made products in a workshop environment, like Tauranga client Industrial Sheetmetals, and the professional services sector such as surveyors that charge out based on time.

Another business in the sector attracted to Tauranga for its lifestyle appeal is UK telephone call recording company Liquid Voice, which set up its Pacific operations from a Te Puna office last year.

Liquid Voice founder Andy Barratt is frank about attracted to the region for the lifestyle appeal and says – similarly to cloud-based software providers - the location makes no difference to the business. However with plans to increase staff four-fold to eight within two years he is concerned about being reliant on attracting and retaining specialist engineering staff from outside the region.

'We do feel there is a big opportunity to be a major local player here selling software developed specifically for clients. We've got quite ambitious development plans.”