The move of customers from licenses to cloud subscriptions dented results at software vendor QAD for the first quarter ended April 30. The company lost $2.7 million, compared to net income of $549,000 in last year's corresponding period. CFO Daniel Lender said results were also hurt by lower-than-expected services utilization as projects slipped out of the quarter and by a $1.4-million negative currency impact.
Doug Deane, owner of DSD Business Systems, a reseller based in San Diego, Calif., has turned his roles as president and CEO over to others in his organization. Deane, who has run the company since founding it in June 1984, has assumed the duties of founder and chief strategy officer. His day-to-day duties will be handled though the creation of two new divisions. Kayley Bell, who remains COO, was named president of the new Sales and Service Division.
The web has reduced the need for large channels; the difference between reseller and ISV is blurring and perhaps most important, the younger generations of business people that are running things often have very little interest in purchasing on-premise software. They live in world that’s not only cloud-first, it’s cloud only. This is the background for this year’s theme: A New Direction: But So Many Choices?”
The momentum of QuickBooks Online shows no sign of letting up. Intuit this week reported that it ended its third quarter on April 30 with 1,397,965 subscribers of the cloud product, an increase of 44.8 percent from last year's corresponding period. In this week's earnings webcast, CEO Brad Smith noted the fact that 80 percent of subscribers have not previously been Intuit customers—in line with the trend for the online financial product.
Bob Scott's Insights newsletter of May 20 has been delayed by technical issues. As soon as these are resolved and we can deploy the newsletter it will be emailed.