If you run a small business or you do any sort of home based accounting, you probably already know about Intuit. Most specifically, you probably have heard of its main product QuickBooks. QuickBooks has truly revolutionized home based accounting and medium sized enterprise accounting. QuickBooks is very intuitive, very easy to use and very powerful. Many people use it to not just organize their daily expenses and cash flow figures but also to prepare the way for that yearly ordeal called tax accounting.
For many servers in this industry, Intuit is the runaway leader. In other words, it has the game all locked down and there’s really no space for new up and coming players. Well, cloud computing has changed the equation and it looks like many observers are saying that Intuit, the parent company of QuickBooks, has been caught flat footed. It hasn’t been too quick in migrating its operations to the web. Of course, this opened the way for new up and coming cloud based competitors to try and snag a piece of the giant accounting software pie from Intuit.
Remember, this is not going to be easy. Microsoft tried to take Intuit’s crown and was basically beaten down, not by Intuit since they were on the verge of possibly selling the company. Microsoft was beaten down by the regulators because they were afraid of extending Microsoft’s dominance into yet another software field nixed that deal. Well, Intuit continued to grow and QuickBooks became the dominant standard up to now. The up and coming cloud based companies like New Zealand based XERO says that Intuit has another thing coming. It is shooting for financial software that uses the cloud. As we have already written earlier, cloud computing is more versatile and more cost effective for many enterprises the world over.
The big draw to cloud computing is you pay for the software that you use. Unlike legacy software which buys and installs and the only way you can really get your money back is you use the software a lot, cloud based computing is a pay-as –you- go type of computing. This is XERO’s main draw and it seems that enough people in the venture capital industry see the beauty in XERO’s vision so much that they have funded the company a hundred fifty million dollars. It would be interesting how this battle plays out because as we have said earlier, Intuit is not an easy target. It is solid; it has a massive brand equity and it’s not going to be easy work knocking Intuit off its perch.