Inevitably, Microsoft's efforts to encourage adoption of its .Net distributed services technology go beyond simply providing developers with good tools ­ there are competitions as well, such as the Trans Tasman XML Web Services competition.

This year the New Zealand winners were Auckland-based developers Interactive Technologies, whose Serko Travel Management application was described by judges as "an excellent example of how web services can open up all manner of business opportunities for a company, both locally and internationally."

The founders and co-owners of Interactive Technologies are Bob Shaw, Darrin Grafton and Andrew Bagnall.

The 10 developers and 20 support and maintenance staff now working for Interactive Technologies are supplying software to travel businesses all over the world but Serko has the potential to reach a much larger corporate market.

Managing director Bob Shaw said Interactive Technology was set up in 1993 as a technology company for the travel industry. "Our travel products are leading edge, and are in use in New Zealand, Australia and around the world.

"Our Travelog product is used by 700 travel agents throughout Australia and New Zealand but our new product, Serko, has the potential to develop from a set of high-end corporate solutions into a complete product range covering retail, corporate, leisure and online travel solutions."

Serko is the culmination of a long involvement with the specialised needs of travel industry.

"I started out in travel in 1987 as a software architect," Interactive Technologies technical director Darrin Grafton said. "Originally there was an Australian-developed CPM product for travel agents, which we bought and moved into DOS and eventually to Windows. But it only covered part of the back office functions such as debtors ledger.

"We saw a hole in the industry and decided we could fill the gap, so we expanded it into our first major product, Travelog."

Essentially an accounting system with special features for handling client files, bookings, documentation and reports, Travelog has been a useful earner for Interactive Technologies over the years.

"It turned out that users had indeed been wanting a one-stop solution so our developed version of the product spread very quickly by word of mouth," Mr Grafton said. "It started out as just a back-office product, and then moved very quickly into the front- and mid-office.

"Developing our own front- office product meant we had a complete integrated solution ­ until then travel agencies had to assemble systems from separate components which were often difficult to integrate but we can provide a single solution that follows the existing practices of travel agents. That gives us the edge over everyone else ­ the alternatives all involve implementing at least three separate systems.

"During the development of both Travelog and Serko we watched what travel consultants do, and asked them what they wanted, so were better able to match the products to real needs. It's all live ­ you put a transaction in and there's no updating; the information flows securely right the way through.

"You can make a booking and have the details flow right through your management system and immediately have a report ready.

"Now we're moving from standard travel industry models into an online corporate booking tool, taking advantage of Microsoft's solution technologies.

"Serko can integrate into a corporate's enterprise management systems, thanks to .Net web services technologies.

"The Microsoft development tools were good too ­ we were able to rapidly develop a solution that could integrate with the existing Office suite, allowing uses to put their travel information into their Outlook calendar or their PDA."

The rise of the internet-based travel booking has not only not harmed Interactive Technologies, it has also been a key to its development of Serko.

"Serko has changed the model," says Bob Shaw. "It's aimed at corporates, including government departments and other large organisations; it gives them the power to make their own travel bookings.

"Typically a travel agency will run Serko Online; host the web pages, then their corporate clients will link in via their intranet. The idea is that corporate users themselves can book a flight, a car and a hotel in under two minutes, while still availing themselves of whatever bulk discounts or preferred carriers they may have agreed on with their agent.

"Potentially the market is huge. Some travel agents providing Serko handle 15 large corporate customers, typically with $200,000 travel budgets per year.

"But there are larger customers than that ­ for example, an Australian government department that's using the system has a travel budget of $A55 million per year.

"The company that's handling its business has bought two Serko installations, one for the general business and one entirely to handle the government department.

"For large businesses with a substantial travel budget, this is the way of the future. And for travel agents, it's the competitive edge."