The Plano firm that helps local governments fix their archaic systems
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A Plano-based technology firm has built a multibillion-dollar business out of helping local governments break up with their archaic web systems.
Why it matters: Tyler Technologies doesn't have major competitors, giving it a near-monopoly on the public sector nationwide, per a new Bloomberg story.
- But some clients say their technology updates have been glitchy, delaying court proceedings and causing longer jail stays, per Bloomberg.
The big picture: Tyler's products span construction permitting, police dispatching, jail booking, property appraising, campground reservations, restaurant inspecting, cannabis licensing and school bus tracking, per Bloomberg.
- In many cases, local municipalities purchase multiple Tyler products.
State of play: Tyler was founded in 1966 and has exclusively worked in the public sector since 1998.
- The company's North Texas clients include DFW Airport, Dallas County and the city of Fort Worth. The city of Dallas has paid Tyler at least $1.8 million since 2019 for police, court and communications services, city records show.
- Tyler projects over $2 billion in revenue this year with over 7,300 employees, many of whom held government roles before joining the company.
Between the lines: Municipalities are notorious for moving slowly. The procurement process can take years, and some of the products have to be customized for the entity and its needs.
- Many municipalities also aren't prepared for the challenges that might arise during the transition process.
Yes, but: In some cases, government workers tell Bloomberg that Tyler's products aren't perfect.
Case in point: North Carolina spent over $100 million on statewide software upgrades and procured a Tyler digital suite to streamline trial date scheduling, court document sharing, fine collection and communication.
- As counties switched to the suite last year, glitches in the new system allegedly led to incorrect court summonses, inaccurate speeding tickets and wrongful arrests, per Bloomberg.
- One county clerk told Bloomberg that she misses the old system because it was "a lot simpler and easier."
Zoom in: Hood County, southwest of Fort Worth, and the company have also sparred over updates to its courts system, per Bloomberg.
The other side: Tyler tells Bloomberg that it has a 98% client retention rate and the vast majority of its implementations are fine.
- "When you start changing processes, all it takes is one or two users to not get it or to not want to do it differently," chief operating officer Jeff Puckett told Bloomberg.