Intuit is transitioning its company by incorporating the move to the cloud into its accounting. The company is now recognizing desktop revenue over time, instead of recognizing license revenue at the time of sale, CEO Brad Smith said during this week’s earnings webcast for the year ended July 31. “This will push about $400 million from 2015 to future revenue,” he noted. One of the larger areas affected will be the desktop professional tax products, Lacerte and ProSeries, whose revenue will now be recognized more like subscription products.
VersAccounts has hired former Sage executive Liam Mullaney to lead its expansion into Europe. Based in Portland, Ore., VersAccounts says its products bridge the gap between low-end offerings like Xero and midmarket products offered by companies such as Sage. Mullaney, once CEO of Sage Ireland and now CEO of VersAccounts Europe, notes the company operates only via the channel and customers get access to all core modules: the required base system, Financial, Purchase to Pay, Order to Cash, Inventory, Logistics, Fixed Assets and Projects.
Sage 100 is one of Sage’s money products in this market. But resellers are saying that the lack of specialized products is hurting their ability to bring in new customers. “Sage doesn’t have any verticals that are built in,” Steve Blythe, owner of Laguna Hills, Calif.-based Blytheco said in a recent interview. ”They were discontinued.” This conversation stemmed from the old built-in versus best-of-breed approach when it comes to the cloud products. Blythe contrasted that with NetSuite, which has been emphasizing verticals, and his NetSuite business is humming along. He also noted the relative lack of verticals for X3, Sage’s product of the future.
However well QuickBooks Enterprise Solutions continues to do, we apparently won’t know. Intuit has lumped QBES results with the rest of the QuickBooks numbers for the first time with its release this week of results for the fourth quarter ended July 31. It’s been clear that Intuit does not want to talk about QBES, probably because it is not the kind of high-volume product that the company puts emphasis on, particularly on the PR front. In the last report, for the April quarter, QBES reached 100,000 active subscribers, those on a support plan. That was up 17.9 percent from the prior year and the growth has been strong.