software – Page 9 – Cooper Mann Consulting

August 26, 2013October 9, 2017

Cloud Computing for Small Business: It’s All About 3 Apps

Every business uses technology at some level, and every business has certain fundamental needs which are most frequently met through the use of computing technology. Regardless of business type or size and independent of industry orientation, there are 3 fundamental things which every business does which means that there are 3 fundamental application types or solutions which every business will buy at some point. These 3 application types, which could be distilled down to just “applications”, have become so broadly used in business and so widely recognized as the standards that their names are often used instead of the term representing the functionality they provide. When it comes to cloud computing for small business, it’s all about these 3 applications.

In what are now referred to as “legacy” or “traditional” models, these products would generally be purchased as software and associated hardware to run it, and would be installed and managed on the local premises. With cloud computing models, the solutions may be purchased or subscribed as managed infrastructure and application licenses, or as a full service subscription (SaaS). Regardless of the service model, the applications are the key to the customer win. While cloud computing may be challenging how IT products and services are sold and delivered to customers, it is not fully impacting which solutions customers are actually looking for. Over the past 16 years this has been the reality, and it may take another decade before these products are unseated from their top positions simply due to the inertia of the installed bases they’ve already developed. Service providers have found (or will find) a way to deliver these applications in cloud computing style, or small businesses will simply not move everything to the cloud very quickly. It is really just that simple, and I’ll explain why.

The three things that each and every business does, and which they generally purchase computers and software to facilitate, are communicating, producing information, and keeping score.

1. Communicating is an essential need for every business. Whether it is communication via phone, fax, email or otherwise, businesses will communicate and they will purchase products which help them do it better. The standard for business email communications has become Microsoft Exchange, which is now available as a highly affordable subscription service from Microsoft or from a wide variety of commercial MS Exchange hosting providers. Certainly the popularity and growth of hosted Exchange supports the argument that not only is MS Exchange mail very widely used in businesses of all sizes, but that it is also highly acceptable as a hosted solution because users retain desired functionality and are able to benefit from a variety of add-ons and additional services from their hosted Exchange email provider. The other thing about hosted Exchange is that the user can still use MS Outlook on their desktop to get their mail. Now we’re back to the desktop application again. Regardless of what mail server and service the user has, they are often more attached to using Outlook than they are to the mail service. In fact, when you ask a fairly non-technical user what they use for email, they’ll often say they use Outlook (the desktop client, not Outlook.com).

2. Producing Information is another essential need for every business. Whether the information is produced for internal or external use, there is a lot of information created to inform various people about the business. Documents, spreadsheets and presentations are used in every business, and productivity applications help people create them. The standard in this area is Microsoft’s Office suite of products which includes Word, Excel and Powerpoint. It isn’t unusual to have someone suggest “making a powerpoint to get the message across”, rather than using the word “presentation”, and does anyone expect to get a document not in .doc format? When users ask for productivity products, they usually ask for Office software and they usually mean Microsoft Office suite products.

The broad use and proven suitability of these products has well established them as the standards for use in business. While these applications are now available as limited-functionality web-based applications, most businesses continue to rely on the desktop products which resulted in myriad file sharing and “collaboration” tools which work with the Office products. Microsoft recognized the value of having the feature-rich productivity applications available in hosted and managed service models (as hosted applications rather than true web-based apps), and made the products available for licensing and distribution via their Service Provider License Agreement (SPLA). Microsoft (direct and via partners) also offers Office 365, which provides licensing for Office desktop applications and/or hosted Exchange email services.

Hosts with cloud servers and managed infrastructure and VDI solutions are all facing this truth: their services are useful when there are applications running on them, and among the most frequently requested applications are the Office apps. This is why so many providers offer not only cloud servers and virtual desktop solutions, they add value to their service by also offering the Microsoft Office products. At least in the case of MS Office, service providers have recognized that certain fundamental applications must be present in order for the server or desktop to have value for the SMB customer. After all, “moving the server to the cloud” doesn’t solve the problem if all the apps remain on the local PCs.

And then we come to the final application – the last fundamental small business application for service providers to focus on. It is with this application that hosting companies will make real impact in moving their small business customers from local to hosted applications, virtual desktops, and the world of cloud servers and managed hosting.

3. Keeping score, or accounting, is the final absolute and fundamental business function which exists in every business regardless of size, type or industry. This is another area where service providers are focusing, realizing that within the realm of small business accounting there is a single standard product line which serves the exact profile of the target SMB/SME customer: Intuit QuickBooks desktop products.

When challenged to find a single application solution which addresses a fundamental business need, is not oriented towards a particular industry segment, and which is likely to drive increased usage simply due to existing market penetration and sales – there is only one name that answers, and it is QuickBooks, most specifically the Pro, Premier and Enterprise desktop editions.

Looking further into the problem reveals that there may be more options for small business accounting emerging in the SaaS market, but this doesn’t help the hosting companies looking to increase usage on their own platforms. Additionally, while new and emerging solutions may be introducing options for very small business, the activity actually serves to increase awareness of and usage of computerized accounting solutions, resulting in increased share of the market looking for and purchasing these solutions – increasing the overall market for SMB accounting products and providing an opportunity to sell QuickBooks solutions to those new users. Further, Intuit QuickBooks remains the dominant choice once the business has needs beyond simple invoicing and bill payment, and continues to see growth in product sales and distribution for this reason.

It’s also true that, once a business has itself “invested” in an accounting product, change is not something considered easily. In many (most?) cases, the business is more closely tied to their financial systems than they are to their service provider. If the provider can’t work with the software, the business is likely to seek services from another provider.

Moving everything but finance to the cloud is not an option for most businesses, either. Particularly with small business/small enterprise, there are generally systems which serve a broad business need and not a single function. QuickBooks is not just a back-office accounting product. It also provides some front-office functionality, such as storing general customer information, handling invoicing, inventory management, job costing and other functions. It is essential that service providers not minimize the importance of this solution in their target client operation.

The financial system is not an island and is often integrated with or connected to other applications and data. Even though the QuickBooks desktop products are designed to suit businesses up to 250 employees, it is unlikely that a business will have all 250 people running QuickBooks. Rather, the product may be used by 2 or 3 people in the accounting department, or possibly by up to 30+ users in an Enterprise deployment where the product serves more operationally oriented functions. The rest of the company is likely using MS Office and email as suggested earlier, and perhaps some other operational or business specific product which may integrate with QuickBooks. The point is that it’s unwise for service providers to minimize the importance of the financial software and systems, even if those solutions are used by only a very few of the total number of users within the organization.

More evidence suggesting that the name QuickBooks has become almost synonymous with small business bookkeeping is visible within the accounting and bookkeeping industry, where bookkeeper training programs focus as much on the QuickBooks product (if not more so) than on actual accounting fundamentals. Businesses hiring bookkeepers don’t ask for bookkeeping experience, they ask for QuickBooks experience. If a small business owner asks his accountant what product to use, it’s a good bet that the accountant will recommend, and possibly even set up, QuickBooks for the client. There is momentum there which cannot be argued with, and it represents significant opportunity for those who have platforms to run the stuff. Weirdly, QuickBooks desktop editions and other desktop-based financial products available in a cloud hosted model represent a last and final element which is driving broad adoption of cloud servers and hosted desktops within the SMB markets.

It is all about the apps, but not just any apps. It’s about the apps small businesses need, want, know, and currently use. Service providers who can offer their customers these applications as cloud service – as managed applications on a cloud server or VDI platform – are in a position to serve the broadest base of SMB/SME customers. Talk about addressable market… at that point, it becomes a simple function of exposure as the value proposition is undeniable (and barrier-free).

Joanie Mann Bunny Feet Make Sense?

August 12, 2013August 14, 2013

The Language of Accounting: Disconnect between Accountants and Bookkeepers

There are a tremendous number of bookkeeper training programs developed over the years which propose to deliver the essential bookkeeping knowledge (e.g., double entry accounting) required in order to properly service business bookkeeping requirements. Particularly as the CPA profession stepped away from traditional bookkeeping in favor of performing “higher level” and more profitable work, there was and continues to be a great need for skilled and experienced bookkeepers. While it seems that accountants and bookkeepers would be a natural fit for partnering to serve small business client needs, there is often a disconnect between the two which causes the working relationship to not always prove as beneficial as it could. What is the cause of this disconnect? In many cases, it is due to the fact that the bookkeeper training educated the operator on the use of a software product, and not on the fundamentals of accounting and bookkeeping.

Over the past few years, I have had the opportunity to look through a lot of bookkeeper training programs, and the thing that stands out is that many of these programs aren’t really training bookkeepers on accounting principles. More frequently, the training is focused on teaching users how to use software (usually QuickBooks). With the number of users of the QuickBooks product, it is obvious that there is a need to educate users on the solution because people need to know how to use their software properly. But it happened at some point in time that a majority of the industry came to believe that learning QuickBooks (or Xero or Freshbooks or Kashoo or whatever) was somehow synonymous with learning bookkeeping.

When I first started working with my father in his accounting practice, I had to use a manual general ledger, check register, etc. It was all manual – computers didn’t come along for a while (yes, I am that old). It was time-consuming, but it taught me the fundamentals. I know what a subledger is. In consumer-friendly software like QuickBooks, you don’t work in the AR subledger; you push the button that says “customers” or maybe “invoices”. QuickBooks, in many ways, doesn’t speak accounting. It speaks record keeping. And this is where the disconnect begins.

An old school accountant will recall the green eye shade days and working with book ledgers and 13-column pads, but even “new” school accounting professionals know that the fundamentals of accounting aren’t available for re-invention. A debit is still a debit and a credit is a credit. Yes, there are intimacies involved which speak to specific treatment of items for reporting and tax purposes, etc., but the essentials of double entry and other basic accounting principles are consistent and unchanging.

The “language of accounting” includes certain precise terms with specific meaning, and this precision in the use of terms simply doesn’t exist in many bookkeeper training programs. Rather than focusing on the fundamental accounting training bookkeepers truly need in order to be of maximum value to the business, these programs focus on helping users become experts in using the software product, or even to become experts at teaching others how to use the solution. While this software expertise may be beneficial in terms of helping accountants work with their clients who use the software, it doesn’t add enough value to the relationship to warrant partnering. What accounting professionals need are bookkeepers who understand bookkeeping and who can apply basic accounting principles to the task. Which software they operate is secondary to that purpose.

Professional bookkeepers, accountants, and the business client are all in a position to benefit tremendously when the service providers team up to provide comprehensive service. The key to making these connections lies with the professional bookkeeper who must not only understand basic accounting principles, but must also be able to speak to the accounting professional in their native language.

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The Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud

cloud-computing When Intuit created the Authorized Commercial Host for QuickBooks program, a variety of providers were enabled to offer not only managed application hosting services for QuickBooks desktop products, they were also permitted to provide QuickBooks desktop product licenses for rent. By allowing these hosting providers to also license the QuickBooks products on a subscription basis, the entire solution – the hosting of the QuickBooks, the management of the company data files, and the licensing of the software – was able to be packaged together and offered as an equivalent of the SaaS solution. The benefits of running tried-and-true business applications on the business network had already been proven, and creating the ability to access this resource at any time and from anywhere (mobility!) became the feature which encouraged a wide variety of large and small business to move to “cloud” and online working models.

While the complete hosted application model – where the business desktop applications and associated data are installed and managed on the service provider servers – addresses a broad requirement for many companies, there remains a large community of users who have needs which do not extend to “cloud server” or remotely hosted desktops and complete managed application services. For these users, having access to the data file from anywhere is the primary goal (maybe even multi-user access for just a couple of users), and management of the software and license across multiple computers is not their first consideration.

Here are the most popular models for working with QuickBooks desktop editions in/with the cloud. Each of these approaches solves a different business problem, so it is important to understand which problems need to be solved before shopping for the solution.

1. Storing the QuickBooks file in a file sync solution

Solves: gives access to the data file from various locations (not at the same time)

Doesn’t solve: no multi-user access in real time, still have to purchase QuickBooks licenses, install and manage applications, and secure and backup data

The popularity of Dropbox and similar file sync solutions clearly demonstrates the value of giving users the ability to store, sync and share files securely via the Web. Further, these services allow people at different locations to access files in a relatively collaborative manner, giving otherwise disconnected users the ability to sort of work like they’re on the same network and using the files in near-realtime. While this approach works awesomely well for Word documents, PDFs and other files, it doesn’t work as well for QuickBooks company data files. It’s pretty much an automated approach to using a file storage solution (like any web drive, file share service or such). To clarify, users can store copies of QuickBooks company files in a Dropbox or sync folder to have that file sync’d to the host and to other permitted computers, but a “live” QuickBooks data file doesn’t like living in this type of folder. The sync or file sharing method of applying a cloud solution to QuickBooks allows for only one person to be in the “real” file at a time, and each user still has to purchase, install and manage the QuickBooks software on their PC. Oh, and bandwidth will become an issue when files must be sync’d frequently and when the files are fairly large (which QB files tend to be).

2. Using secure remote access to QuickBooks, remote desktop or remote app solution (like hosting, but the host just happens to be an on-premises computer already in place)

Solves: gives access to the file and applications from various locations, allows for multi-user access to company file, allows access to just QuickBooks or any combination of applications on the host computer; low-cost solution providing mobility and device independence just like commercial hosting but at a fraction of the cost

Doesn’t solve: have to purchase QuickBooks licenses, install and manage applications on the host, and backup data

Secure remote access solutions like MyQuickCloud allow users to connect to applications that are installed on existing workstations or servers. This approach provides users with access to QuickBooks and other software installed on the in-house computer. The problem with this model is that the bandwidth and the in-house computer need to be sufficient to support remote users, and the activities of the user sitting at the in-house computer will take priority over the remote user requests.

3. Using a hosting provider and/or platforms for QuickBooks, remote desktop or remote app type of solution

Solves: gives access to the file and applications from various locations, allows for multi-user access to company file, may allow for rental licensing of QuickBooks software, files are backed up by service provider

Doesn’t solve: commercial hosting is not a very low-cost solution for those who only need file sharing

Application hosting models allow users to connect to servers where the applications are installed and managed by the service provider and delivered to customers as subscription service. This approach provides customers with flexible options for accessing QuickBooks software installed and maintained on the host’s servers, and to have the multi-user capabilities of the product just as it would function on a local network. Application hosting models are generally offered as standardized service or as custom service, with variable pricing and features associated with each.

Because these hosting models require that all components of the delivery be combined to deliver the service – from networks to servers to desktop virtualization to application virtualization, application licensing, data management… it’s a big list of things – the cost of service may seem a bit high for a single user or very small business to bear. This is among the reasons for continued popularity of do-it-yourself remote access solutions that deliver mobility but fail to address any sort of system management benefit.

When business users ask about using their QuickBooks desktop editions in the cloud, it makes sense to drill down into the details of what they’re really looking for. In many cases, the QB user simply doesn’t know how to ask for what they want, using popular terms without real understanding of what they mean. This is something which frequently happens when a prospective customer contacts a QuickBooks hosting provider, and the sales department of the hosting provider isn’t generally in a position to offer consultation – they are there to sell their solution to the prospect. The result is that the customer doesn’t really get what they want, and the provider gets a bad review.

The problem isn’t necessarily with the provider or service (I wish more sales teams were able to offer more consultative approaches, but that’s an entirely different conversation); the problem occurs largely due to the variety of services being offered around “cloud QuickBooks” and the ambiguity which exists in much of the marketing language around them. Maybe this information will help businesses as they look to find solutions to the variety of problems with “enabling” their desktop QuickBooks to work with the cloud.

Joanie Mann Bunny Feet Make Sense?

July 29, 2013November 22, 2017

Hosted QuickBooks Need Drives Hosted QuickBooks Approach: QuickBooks Desktop Editions in the Cloud

Intuit QuickBooks essentially “owns” the accounting/bookkeeping software market in the US, having an enormous share of distribution and millions of users. Even with the emergence of new web-based and SaaS solutions designed to address the needs of small business bookkeeping, the visibility and momentum of the QuickBooks brand has kept it in the lead position and users continue to adopt the QuickBooks desktop and online editions in record numbers. What may be a surprise to folks who believe “the desktop is dead” is the reality that quite a lot of the adoption and usage continues to be centered on the QuickBooks desktop edition products rather than the purely Online, SaaS product, and this is at least in some part supported by the hosted QuickBooks service model.

The desktop is dead. Long live the desktop!

Software-as-a-Service and “the cloud” have become the focus of the entire information technology industry, and this new paradigm of computing continues to evolve and reveal potential at every level. What’s interesting is that the paradigm – which involves mobility, anytime/anywhere access, managed service delivered as a utility subscription, and more – is bringing new life to what many have come to refer to as “legacy” applications (like QuickBooks desktop editions). While many technologists would have us believe that the traditional desktop is dead, the reality is that the traditional part of it is all that may be dying… the desktop and what it offers and represents isn’t dead at all. In fact, it’s very much alive and well and continuing to do what it was intended to do, perhaps a bit better, due largely to advancements in desktop and application virtualization and other discoveries.

Several years ago the Application Service Provider model established itself, positioned to provide hosting of business applications as a subscription service (“several” is somewhat of an understatement; the first real ASPs emerged around 2000-ish). Using Windows Terminal Services and other tools, these early providers recognized the benefits of hosted and managed desktops, and further recognized that the value of the service existed largely with the applications and not simply the outsourced desktop. Back then, there was an awful lot of talk about how the “desktop is dead”, because delivered applications would become the norm. Then the dotcoms busted and a lot of ASPs went out of business, leaving a rather poor taste in the mouths of consumers and independent software vendors (ISVs) alike.

As web-based, SaaS and “cloud” solutions began to emerge and prove their viability, business users returned to the web in search of solutions to mobility and secure remote access to business applications and data. While a great deal of success has been realized by many of these SaaS solution providers, there has remained a significant need and desire for desktop applications, desktop presentation, and desktop functionality. The adoption by the market of SaaS and cloud services eased the adoption of hosted application services, as well, and now there are a wide variety of providers offering an equally wide variety of hosted and virtualized desktop and application services (application services like hosted QuickBooks, for example).

The popularity of the QuickBooks desktop products, coupled with new capability offered through advancements in hosting and application delivery solutions, directly address the desire of the market to eliminate complexity and reduce cost of IT operations. Hosting is somewhat of an “equalizer” between QuickBooks desktop and QuickBooks Online, allowing the QuickBooks desktop users to have the same managed subscription service as Online Edition users, but with the rich features and full functionality present in the desktop editions. Businesses wanting to run QuickBooks in the Cloud are not forced to transition to the product which may not fully meet their needs, or which is simply unfamiliar to them – they can continue to utilize their trusted QuickBooks desktop editions, only in a hosted/delivered environment.

Here’s the catch: It’s a good idea to only work with an Intuit-authorized Commercial Host for QuickBooks, because there is no other lawful way to obtain QuickBooks hosting services from a service or solution provider. No, it is not lawful to provide QuickBooks hosting services unless the hosting provider/service is actually authorized by Intuit to do so, and anybody using QuickBooks software has already agreed that they will not utilize the software with a hosting provider or similar entity without specific authorization. The hosting provider risks being targeted for unauthorized software distribution, and the customer risks losing their right to the software and services by violating the EULA terms. Even if the software doesn’t cost a lot, businesses will recognize that their business data has value, and keeping their software in a usable and properly licensed state is necessary to preserve the value of that data.

The End User License Agreement for QuickBooks products – an agreement between Intuit and the consumer – spells it out in plain language and describes specifically how the QuickBooks product is NOT eligible to be hosted, or provided by a hosting service. Note that this includes situations where the hosting company is providing the actual QuickBooks software, and in situations where a business already has their QuickBooks software and provides it to a commercial hosting company to have it installed and managed and provided to users. In short – QuickBooks is not supposed to be installed and managed by a 3rd party hosting provider who is not authorized by Intuit as a commercial host for QuickBooks regardless of whether or not the customer provided the license.

Further, by accepting the EULA in order to use the QuickBooks product, users accept the fact that Intuit has the full right to terminate that license in the event that terms of use are violated. Remember that these license agreements provide USE RIGHTS, not ownership, of the product. You have to use the solution under the terms and conditions of the license, or you lose your rights to the product, support, or any other benefits included. http://support.quickbooks.intuit.com/support/articles/INF20630

Why Businesses Use QuickBooks Hosting Services

The reasons why businesses elect to have their QuickBooks solutions hosted come in many forms, which explains why there are a variety of options for getting hosted QuickBooks service.

For users of the QuickBooks Enterprise products, managed IT service may be the primary goal in adopting a cloud hosting model. Hosted and managed IT services, including hosted desktops and managed applications, allows the business to benefit from predictability in IT cost and to transition from a regularly scheduled capital-intensive upgrade cycle to a consistent and budgetable operational expense.

Users of QuickBooks Pro and Premier, on the other hand, are more likely to see mobility, remote access, and real time collaboration as the primary benefits of a hosted model. While the small business owner will frequently argue about the true cost of IT management (which is pretty arguable when the totality of their infrastructure consists of a standalone PC), it is the access to the application and data at any time and from anywhere that gets this single user online – generally with a smart phone or tablet computer or some such mobile device accompanying the requirement.

In many cases, there are other drivers in the business moving the organization along the path towards “cloud enablement” of their solutions, and QuickBooks is simply one of the products to contend with. Hosted QuickBooks may not be THE REASON for going to an online working model, but it is one of the core components which can cause the project to either see success or fail miserably.

I have seen situations where an entire organization’s computing infrastructure was re-deployed as SaaS service, but the one critical thing they forgot was the controller’s requirement for QuickBooks Pro. Months of time and many dollars were invested in moving the rest of the company to online application service, only to find that they all returned to local application use because of the requirement to work collaboratively with the controller and with reports and data produced through QuickBooks. On the other hand, I’ve also seen where the accounting department was the only group moved to the hosted environment (in this case, the provider was focusing on QB and not on the rest of the business requirement), and this group also returned quickly to local operation in order to continue collaboration with internal team members and to benefit from the integration of applications (e.g., QuickBooks working with MS Office, etc.). One size certainly does not fit all, and any purchaser of a hosted QuickBooks solution should keep in mind the entire business requirement in case QuickBooks is only a piece of the puzzle (albeit an essential piece).

Hosted QuickBooks may come as a published or managed application, as a desktop application on a remote or virtual desktop delivery, or as an application“delivered” to the user’s PC. In any case, whether QuickBooks is viewed as a point solution – delivered alone as a single application – or whether it is part of a larger virtualized desktop or application deployment, it remains one of those products that satisfies a fundamental need in small businesses, and now it’s available in the cloud.

Joanie Mann Bunny Feet Make Sense?

July 22, 2013December 7, 2017

QuickBooks And The Cloud

There is a lot of buzz about Cloud Computing. I think we all understand that the “Cloud” is that little picture you always see representing the Internet, and that’s what the term refers to: the computing platform isn’t in your office, it’s “out there”, across the Internet. Just think of the Internet as a really long cable that connects your keyboard and monitor to the system that is really running the software.

When companies like Intuit talk about Cloud Computing and QuickBooks, it’s a little bit confusing, given that a large part of their QuickBooks market is still based on locally-installed desktop software. And, with the volume of 3rd party developers with widgets, gadgets, plugins, extensions, and integrations with desktop QuickBooks, the momentum of the desktop solution seems unstoppable. But there has been a catch to the old model of plugging into QuickBooks, and it’s catching on really well.

The creation of the IPP (Intuit Partner Platform) and changes to software integration platforms for QuickBooks introduced an entirely new range of capabilities for QuickBooks developers. Finally, persistent connections to Web-based and other applications may be crafted for QuickBooks desktop, allowing the locally-installed QuickBooks to “speak” over the network to other applications or platform services. This development opens up an entirely new model for extending QuickBooks functionality – extending to a Web application framework.

Businesses are able to take broad advantage of Web-based application services and the features they can deliver without compromise to their choice of accounting and financial management system. Extending access to operational, sales, service, and other users within the enterprise has become a simple and seamless operation. For example, a business that needs to extend QuickBooks Enterprise system to accommodate multiple inventory or warehouse locations can do so easily by simply plugging in a web-based warehouse management solution that has an integration with the QB desktop product. This solution could be a SaaS (software as a service) application which not only provides functionality for multiple warehouse management, but is designed as an anytime, anywhere application to allow those multiple locations to access the system when they need to.

By creating the means for businesses to use the Web to extend their QuickBooks software, Intuit has extended the useful life of the QuickBooks product. Functionality is no longer limited to what can be built and installed on the PC – the application is now able to be extended in numerous ways and on numerous platforms. Businesses are able to take advantage of the best software fit for their organizational operations – including leveraging the anytime, anywhere benefits of a Web-based application service – and still are able to utilize their QuickBooks.

Consider how beneficial it would be to businesses who elect to take advantage of the Web for them to be able to run their QuickBooks (feature-rich desktop QuickBooks) in an anytime, anywhere sort of environment, as well. From a QuickBooks hosting provider, businesses can get services for QuickBooks Pro, Premier, and Enterprise – allowing organizations to have their QuickBooks financial applications managed, protected, secured, and made available to users all the time and from any location. The hosting service can also support integrations and extensions for QuickBooks – for both desktop and Web-based applications and services. And, with the commercial provider’s ability to provide authorized subscription licensing for both QuickBooks and Microsoft Office, a business can have a complete, outsourced IT solution and pay only monthly service fees to get it. No upfront expense of purchasing software. No installation or system management to worry about. The QuickBooks financials, as well as the solutions it connects to, are connected in the cloud.

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July 15, 2013April 20, 2017

Criteria for Evaluating QuickBooks Hosting Providers: Going Beyond Pricing

When a small business elects to run their QuickBooks desktop edition software in the “cloud”, it makes sense to work with an experienced provider – a company with the people and the experience to keep the QuickBooks desktop software working properly and securely. The keys to selecting the best provider for the business are often hidden in the experiences of others; experiences which reveal issues that may significantly impact vendor selection and which have nothing to do with the price of the service. Criteria such as system performance, responsiveness to technical issues, resources for self-help, and knowledge of support personnel – these are the things that more frequently and directly impact the customer experience and, ultimately, the customer’s loyalty.

While Intuit supports QuickBooks Enterprise in terminal server and Remote Desktop environments, they only support the license when it is deployed for the single business organization the license was issued to. If a business has lots of different users on the platform and those users don’t belong to the one company who “owns” the infrastructure and the license, then the implementation is non-compliant and won’t be supported. Intuit also doesn’t offer direct support for QuickBooks Pro and QuickBooks Premier editions in remote desktop implementations, yet the software will work perfectly well in that environment. There are a few quirks and tricks to using the software in this manner, however, so provider technical experience specifically with QuickBooks is essential.

When working with a company providing managed application hosting services and not just managed server platforms, it generally means that the provider is taking responsibility not only for the server/network/infrastructure, but also for the setup, configuration and maintenance of system users and security, and the installation/management/maintenance of the applications running on the server. When a business elects to outsource this level of service to any 3^rd party, there are a variety of areas in addition to pricing which should be thoroughly explored prior to signing the service agreement.

When evaluating potential service providers, research the provider’s offerings and performance directly as well as evaluating the public’s perception of them, considering these 4 areas:

Technology
Innovation
Business Practices
Customer Satisfaction

The technology evaluation relates not only to the systems and tools applied to the service delivery, but also to the systems or tools applied to assist the customer with dealing with the service. Too often, providers pay more attention to their ordering systems than their service delivery, believing that a quality customer experience rests more with simple purchasing processes than with a functional and well-performing application service. Others may focus on delivering the best and highest quality application service, yet relegate their clients to sending emails or making phone calls to place service orders or request service information. The providers who score the highest points in this category are those who recognize that both elements – service delivery and service administration – are critically important to providing a quality overall customer experience.

The innovation evaluation looks at the actual service infrastructure and delivery. This includes features as well as limitations. One of the pitfalls of being an application service provider is the inertia created with existing systems and customers. Once the platform is in place and there are a bunch of users on the systems, upgrading and updating the underlying technologies can be a tremendous challenge. I have often related this as being like trying to change tires on a moving truck. Unfortunately, systems age and lose functionality, compatibility, support, etc.

Keeping the platform updated isn’t the only element involved with scoring provider innovation. Even more important than simple change management supporting status quo, true innovation speaks to efforts directed towards crafting a better, more functional and more useful solution delivery. Many skilled technicians can set up a terminal server for remote access to QuickBooks using the “standard” tools available, but it takes more skill and understanding to create a service which offers more and better capability than everyone else. The point isn’t that the provider is changing QuickBooks software in any way – that’s not really an option. Rather, it is in how the provider elects to architect their systems and solution, and whether they are attempting to improve the experience and deliver with a unique approach rather than a generic one.

With increased competition and as some provider platforms experience challenges either due to age or capacity, certain “interesting” practices have emerged. I now look at these business practices as part of the process of evaluating providers. In the early days of hosting and application delivery, the business practices of various providers had some similarities, but not any more. The practices which frustrate me most and which always cause me to score the provider with low marks in this category relate almost exclusively to transparency – or lack thereof. Here are two scenarios which I’ve seen come up with some frequency, and which (in my opinion) are indications that the provider may not necessarily be one you want to work with.

A business has signed a one-year service agreement with a hosting provider, and has been required to prepay that annual contract. The business was not provided with a demonstration or evaluation system prior to executing the service agreement; they simply trusted the information provided by sales. After a few months on the service, the performance and support are so poor that the business wants out of the annual agreement, even though high service levels and support responses were part of the contract. In order to be allowed to end the service agreement and stop paying for the service, the business was told they would have to not only buy out a portion of the remaining contract, but also sign an agreement not to communicate the service problems they experienced or the exit agreement terms with anyone. (*please note that I am essentially in agreement about having to buy out a committed term agreement, at least in part, but applying a gag order? Not so much).
A business is using the services of a hosting provider, and has a need to know details of their delivery (like server operating system version) in order to verify compatibility with a new software product they wish to purchase. Before the business customer is allowed to obtain the information, the provider requires that they sign an agreement promising not to disclose the information they may receive to any other party. (*note: While I recognize that this type of agreement is desirable to protect proprietary information, it is more often used to prevent the prospective customer from disclosing something potentially negative, and it certainly doesn’t do much in terms of building trust.)

The final evaluation is on customer satisfaction, where anecdotes and information is collected from both current and past customers of the provider. Admittedly, much of this information I scour from various forums and discussion groups and interviews but it is truly amazing what you can learn about a business simply by listening to customer stories in various social venues. The picture these stories paint is often (frequently!) very different from the “happy sunshine and rainbows” testimonials you find on websites and in marketing brochures. Of course, who would buy from a provider who says their “support is great until you’ve been with us for a month, and then we pretty much don’t care about you any more”. Also, people tend to be more vocal when they’re mad about something, so there is often more negative than positive out there in the social realm, so weight that carefully. But the fact that certain provider names come up more often than others is the clue; when you don’t see the provider name come up in these discussions, it usually means they’re simply not making people mad.

There is a lot to consider in selecting the right service provider for the business, and the items listed above are just part of it. While there are some (few) standards among application service providers, it is still what some might refer to as an “emerging” model and will continue to evolve with the market demand and technology.

For now, businesses just need to know that their solution provider is trustworthy and willing to communicate honestly and completely. Selecting the right provider – a provider who supports their business and model with full transparency to the client – will help the business move forward just as the wrong provider is more likely to hold it back. While pricing is an important and unavoidable aspect of the discussion, businesses should also put some focus on these other elements which help to reveal how the provider works with their customers, and to determine whether or not they can (or will even try to) meet your requirements now and in the future.

Make Sense?

Joanie Mann Bunny Feet J

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