As The Cloud Turns: Dell’s 1-5-10 Cloud Roundtable

The roots of cloud computing date back to the late 1990s, but the “cloud” continues to evolve—as does the conversation about its impact on technology and business. So I welcomed the opportunity to moderate a discussion of cloud past, present and future at Dell’s recent 1-5-10 Cloud roundtable in Washington DC. Dell’s 1-5-10 series is designed to engage Dell customers, executives and influencers in discussions exploring the implications of major tech trends over the one, five and ten years

Top Takeaways

  • IMG_2915The cloud means different things to different people–but “game changer” is the common thread. We kicked off the roundtable by asking participants to describe cloud in three words or less. Customers chose descriptors such as cost-effective, flexible, reliable and mobile. For instance, Edima Elingewinga, Executive Director, Information Technology at the United Nations Foundation, used mobile as a key descriptor, noting that “Cloud facilitates communication all around the world. That is critical, and that is what drove us to the cloud.” Meanwhile, Dell execs used terms such as digital services enablement, future-ready, and scalable to describe the cloud. However the group was in consensus that the cloud is a game-changer for businesses, government and non-profits.
  • us government sealFederal government adoption of cloud has slowed since the Cloud First policy was established. Cloud First is an initiative launched in 2011 by then US CIO Vivek Kundra. The policy mandated that government agencies had to evaluate a cloud computing option first, and had to have a strong rationale on why they could not use cloud before they could purchase traditional on-premises solutions. As Dell Director of Product, Cloud Management Systems James Urquhart noted, “If you look at this from 2010-2013, you’d have to argue that the federal government as a whole was ahead of the enterprise” with a top-down approach and mandate. But, despite early advocacy and some marquee cloud deals, federal adoption has been more sluggish than many had anticipated, as noted in a 2014 report from the US Government Accountability Office (GAO), CLOUD COMPUTING : Additional Opportunities and Savings Need to Be Pursued. David Lancaster, Dell Federal marketing executive, believes that this is due in part to different agencies having different requirements for different types of clouds—which makes the sourcing process complex and time-consuming. “The federal government is more concerned about private cloud because of security,” added Dr. Lon D. Gowen, chief technologist and special advisor to the CIO at USAID. According the GAO report, legacy migration concerns, cultural barriers and skills deficits also put a drag on adoption.
  • The silver lining in Cloud First is that it sparked adoption in the private sector. Government endorsement of Cloud First paved the way for the private sector to become more bullish on cloud adoption. As Edina Elinewinga, commented, “If the government can trust the cloud, we can trust the cloud.” As a result, private sector adoption is now outpacing that of the federal government.
  • cloud question markCloud computing decisions are becoming more strategic and complex. Whether in business or government, cloud conversations are evolving into discussions of how cloud computing can provide strategic business benefits. As Executive Director and General Manager of Dell Cloud Services Jeremy Ford commented, “The cloud is an enabler, not the point of the discussion. The more organizations view it as an enabler, the more successful they’ll be.” Dell Vice President and General Manager for Engineered Solutions and Cloud Jim Ganthier observed that the conversation is shifting away from “either/or” private or public cloud to one of an “and” conversation in an increasingly hybrid cloud computing world. As Dr. Phil Yang, director of the NSF Spatiotemporal Innovation Center stated, “Choosing the right cloud is like match making, you need to think of it like uber legos.” Participants agreed that most organizations will choose to utilize both public and private clouds, depending on a requirements, constraints and other considerations.
  • Cloud is changing the role of IT. As the cloud conversation shifts to business enablement, IT is increasingly expected to serve as a strategic advisor to the business. Edina Elinewinga said that she has become more of a technology broker in her role now. In addition, IT must assume responsibility for developing a coherent strategy to guide organizations in how to use and integrate different types of cloud deployment models and providers.
  • Cloud will become the fabric of our lives. Big Data and the Internet of Things (IoT) will drive cloud growth over the next 10 years, affecting every aspect of cloud decision-making—from infrastructure and management to strategy requirements. “Big data and IoT are examples of usage models that wouldn’t have been practical or enabled without the cloud,” observed Jeremy Ford. “In about 10 years, everything will be part of the cloud, and we won’t use the word cloud to describe what we are using,” according to Dr. Phil Yang. And Jim Ganthier predicts that “We won’t be talking about “the cloud” in the future. It will be all about the data generated and how we use it.”
  • digital securityPrivacy and security concerns will continue to be top of mind cloud concerns–and power issues will enter the discussion. Privacy and security issues will intensify as more devices, more data comes into play. Edina Elinewinga noted that she is focused on how to keep the work environment and data secure as more and more UN Foundation employees bring different technologies and applications into work. As cloud computing becomes more ubiquitous, power issues will also arise. Dr. Lon D. Gowen predicted, that we’ll need “power over the airwaves to enable future generations of cloud computing.

Summary and Perspective

The cloud conversation is increasingly centered on business problem solving, enablement and innovation. And, big data and IoT are likely to fuel exponential growth in cloud adoption and use cases beyond what most of us can even imagine today.

However, as cloud computing becomes a ubiquitous solution for more problems, cloud alternatives and issues are also becoming more numerous, nuanced. Cloud choices will also become more inter-dependent and related. As complexity and choice expands, brokerage services will become essential in helping most organizations navigate the cloud landscape.

As business reliance on the cloud grows, IT and business decision-makers must align to meet business requirements and optimize long-term security, agility and flexibility with cloud solutions. Both groups will also need guidance and education to build a common foundation from which they can engage to optimize their cloud investments.

Charting a Course in the ERP Clouds

cloud question markFor many SMBs, limited IT resources and budgets are the norm. This makes keeping pace with technology requirements an uphill battle.

Over the past several years, cloud-based solutions have helped SMBs put technology solutions to work with less cost and complexity, and more flexibility, than traditional on-premise deployments. The technology underlying cloud ERP solutions provides SMBs with agility, efficiency and financial benefits. For instance, cloud solutions:

  • Capitalize on virtualization and load-balancing technology. Applications are more easily deployed, managed, and even scaled across multiple servers and database resources as demand and growth changes
  • Provide access to software, server, storage and other computing resources that you provision—and users access—over the Internet or a private network via browser, so you don’t need to deal with client upgrades.
  • Store data resources in the cloud instead of on individual devices, easing management and security concerns.
  • Typically take a layered security approach, which includes encryption, key management, strong access controls, and security intelligence to further increase data security.

This translates into big advantages for businesses. For instance, one of the biggest benefits cloud solutions provide is on the mobile front. Users can easily self-provision and use cloud applications from a web browser, through Apple and Android mobile devices, or Windows, Mac or Linux desktop platforms—without expensive, complex VPN and remote access software. This makes it easier for businesses to support BYOD (Bring Your Own Device) programs.

Slide1These kinds of benefits have convinced many SMBs to adopt cloud solutions in areas such as CRM and collaboration. As they realize benefits in these areas, they are increasingly likely to consider the cloud for core business functions, such as accounting, financials, and ERP. As indicated on Figure 1, only 14% of SMBs currently use cloud Accounting/ERP solution. However, among those planning to purchase or upgrade, 20% plan to select cloud Accounting/ERP. 14% are not sure, and likely to consider both options.

However, clouds come in different shapes and sizes, including public (software-as-a-service or SaaS) private clouds and hybrid clouds. Adding to the confusion, the lines between different cloud models are blurring. Finally, the list of vendors offering cloud financials and ERP solutions for SMBs is growing.

So how can you determine which cloud ERP approach is right for your business? .

Screen Shot 2015-04-29 at 9.19.54 AMSponsored by Acumatica, SMB Group’s free ebook, Clearing the SMB Clouds will help you understand the cloud variants that you’re most likely to encounter when evaluating ERP solutions and deployment alternatives, the tradeoffs between them, and critical security questions. The ebook provides guidance to help you determine which model will best match your company’s strategy, workloads, performance and security needs, and how to assess cloud ERP providers, partners, and solution capabilities.

The bottom line is that the business models, goals and requirements of SMBs are as diverse as the cloud ERP choices available–there is no “one size fits all” cloud ERP choice that’s right for all SMBs. While cloud ERP solutions offer SMBs the means to streamline operations, adapt, and grow in today’s fast-paced business environment, it’s important to do your homework to figure out which solution will be the best fit for your business.

The Cloud Comes Full Circle: Sage and Salesforce Team Up For Sage Life

White Clouds in Blue SkyIf you had any doubt that the cloud has become mainstream, yesterday’s announcement that Sage and Salesforce have inked a global partnership to bring Sage small business accounting and payroll solutions onto the Salesforce 1 Platform should erase them.

The partnership brings together opposite ends of the software universe. It pairs Salesforce, pioneer and poster child for the cloud, with Sage, which has arguably been one of the slowest software vendors to embrace cloud computing. While Marc Benioff’s Salesforce posted 26% revenue growth in it’s recently close fourth quarter, Sage posted growth of 6.2%. Not to mention the rumors of Salesforce potential value as a $50B to $60B acquisition target to a still unidentified bidder.

Sage Life is aptly named, as the partnership offers Sage the potential to breath new life into a its product lineup with a cloud solution better tuned to the needs of today’s small businesses. Sage Life provides unified accounting, financials and payroll in a cloud based, customizable solution. The solution is mobile ready, and can be used on any device, from smartphones to smart watches and from tablets to the desktop. The real time, unified data view and social functionality enable collaboration between employees, customers, partners and other constituents.

Coupled with Sage’s strong understanding of small businesses, the partnership infuses Sage with a credible foundation to attract new customers to its fold, which has been a notoriously difficult feat for the vendor to achieve over the past several years. By providing a modern, integrated small business solution that also integrates with Salesforce CRM, Sage is aiming to solve the integration challenges that so many small businesses struggle with (Figure 1). As indicated, roughly 40% of small busnesses (1-100 employees) have not done any business application integration. And, among those who have, 71% use unwieldly, unscalable custom coding or manual methods to accomplish the task.

Figure 1: Level and Type of Business Application Integration Used By Small BusinessesSlide1

The relationship is complementary to Salesforce’s investment in and partnership with FinancialForce, which is also built on the Salesforce 1 Platform, but is geared towards midsize businesses. Sage provides Salesforce with a similar, integrated front and back office story for small buisnesses—and perhaps a possible investment opportunity as well.

Already a leader in corporate philanthropy, Sage has also joined Pledge 1%, perhaps cementing a stronger bond. Based on a Salesforce’s 1-1-1 model, Pledge 1% encourages individuals and companies to pledge 1% of equity, product, and employee time to their communities.

Perspective

In the tech world, the initial announcement is all too often the climax of the partnership. While it’s too early to tell if this one will blossom beyond the honeymoon phase, it’s certainly in Sage’s best interest to make the relationship work, as it’s future growth will be heavily dependent on this new offering. Meanwhile, Salesforce, which has arguably become less in tune with small business as it has moved up into the large enterprise space, stands to benefit from Sage’s small business knowledge and customer base.

Discussing 2015 SMB Tech Trends, Part 1: Cloud is the New IT Infrastructure for SMBs

Recently, I had the pleasure of kicking off the new year as a guest on Act Local Marketing for Small Business with host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed SMB Group’s 2015 Top Technology Trends for SMBs and what they mean to the marketing and running of your business. The first of a five-part series, this post summarizes our discussion of “Cloud is the new IT infrastructure for SMBs.”

White Clouds in Blue SkyKalynn: Welcome, this is Kalynn Amadio and you are listening to ACT LOCAL Marketing for Small Business, and I want to introduce you to a previous guest of the show. I can tell you that Laurie’s previous podcasts were some of the most downloaded in this show’s history. Laurie, I’ll have to look up how many downloads you have altogether, I haven’t done that in a long time, it’s always fun.

Laurie: Hi Kalynn, great to talk to you again too.

Kalynn: I’ll tell you, I mentioned that the couple of other interviews you’ve done with me, because Laurie always looks into her crystal ball and tells us what is on the horizon, what can we be thinking about, and people must really like this Laurie because they download those two podcasts that have predictions more so than many of the other interviews that I’ve done over the years, so kudos to you.

Laurie: Thank you Kalynn, that’s great to hear. We try to put these technology trends into a language that us mere mortals that are not necessarily technologists can understand and relate to in terms of our businesses.

Kalynn: It’s important to have some smarty-pants people like you looking at all this stuff and making it understandable for the rest of us. Now you have a report that’s going to be coming out soon that are the small and medium SMB groups, Top Ten Small and Medium Business Technology Trends for 2015. We won’t have time to go through all ten of them but I have cherry picked half of them that I’m hoping that we will get through because several of them will impact local businesses, small businesses, a lot of the baby boomers that I deal with and marketing related things. The first one I want to ask you about is the cloud, right? A lot of businesses still get confused about what that means. I can’t tell how many times I’ve had to explain what the cloud actually is, but tell us about the cloud as the new IT infrastructure for small to mid-size businesses.

Laurie: Okay, fantastic. Our first prediction, as a matter of fact, is that cloud is the new infrastructure for SMBs.   What we’ve seen over the years, and believe it or not, this concept of cloud computing has been around since really the late 1990s, but it kind of got off to a rocky start for a lot of reasons that we don’t really need to go into in detail. Suffice it to say that maybe in the beginning the concept was a little ahead of its time in terms of the available technology and network bandwidth and things like that. We’ve basically seen cloud really take off in the last few years, especially since the recession. Interestingly what we’re finding is the cloud is definitely enabling a lot of smaller companies that no way no how could they have ever been able to implement a lot of different technology solutions on their own. The cloud is kind of leveling the playing field because they don’t have to have in-house technology expertise to deploy these solutions. We’re really seeing in our research more and more small businesses believe very strongly that technology solutions help them improve their business outcomes or run their businesses better. The cloud has really been a way for these guys to get those solutions that can really help them fulfill their business goals without having a lot of IT staff.

Kalynn: When you talk about cloud IT solutions, give us some household names.

Laurie: There are a million of them. You now have QuickBooks Online, Intuit QuickBooks Online, which has now I think probably 750 or 800,000 customers are running QuickBooks online. That’s something obviously kind of a household name for small businesses. Also vendors like Salesforce.com, InfusionSoft, or ReachLocal, which has a great marketing automation solution for local businesses. There are lots of them virtually in every solution category. Most of us are already using cloud-based email solutions for using Gmail or Office 365 or something like that. Really almost every single category of applications is now available in the cloud. What we see in our last survey that we did in 2014 earlier this year is that 92% of SMBs are now using at least one cloud business solution which is the kinds I just mentioned, like accounting, marketing and sales and things like that. 87%, almost as many, are using at least one cloud infrastructure solution. That could be for security, or backup, or file sharing like DropBox and Box.net, and things like that. We really see small and medium businesses it is already mainstream for them, but a lot of them are only using maybe one or two. I think as these businesses really see the benefits of automating parts of their businesses with technology and have a good experience with cloud solutions we’re going to see that cloud expansion rise even further. There really aren’t a lot of barriers to adopting a cloud-based solution.

Kalynn: Right, and it really saves you in your budget because you don’t have to maintain any of this infrastructure or these types of software yourself. They’re so helpful.

Laurie: It’s really helpful. One of the big sticking points for cloud is that while it reduces a lot of the technology barriers, it hasn’t helped a lot of small businesses in terms of reducing business expertise barriers. In other words, you may have a very successful business but you yourself may not be an accounting expert or a marketing expert, or whatever, but we’re starting to see especially in what I would call some of the newer cloud solutions more expertise built-in and more kinds of hand holding services provided, and a big emphasis on user experience, creating a user experience that makes it much easier for people that aren’t subject matter experts to understand how they can most effectively use the solution in their business for better marketing, accounting, or whatever.

You can listen to the complete podcast discussion here

Dell’s Strategy to Bring Game-Changing Technologies to SMBs

This is the second post in a two-part blog series discussing Dell’s strategy to help SMBs better capitalize on technology. The first, A New Cloud Formation: Dell Cloud Marketplaceprovides perspectives from Dell World 2014. This second post, which is excerpted from SMB Group’s April 2014 report, Guiding Stars: Vendor Strategies to Bring Game-Changing Technology Trends to SMBs, offers additional insights into Dell’s approach to help SMBs capitalize on technology trends.

delllogoThe writing is on the wall for any business: With customers and prospects racing into the digital, mobile, and social future at breakneck speed, SMBs must proactively deploy technology to improve both business processes and the customer experience. SMBs that figure out how to use technology to stay ahead of their customers’ demands will thrive, while those that don’t face extinction.

But there are lots of vendors and solutions out there ready to help you on your journey, and one-size-fit all doesn’t apply in SMB. Is Dell a good fit for you? Read on for information and insights to help you decide.

Slide1

Dell’s Strategy to Bring Game Changing Technologies to SMBs

Dell sees cloud, mobile, social, analytics and other technologies converging towards the next pivotal tipping point, where IT will change the lives and experiences of nearly every industry, country and person on the planet.

Dell articulates its view on top technology trends somewhat differently than other vendors interviewed for this report. However, the same technology trends—cloud, analytics, social, mobile and security—are core to Dell’s top picks. Dell sees the following trends ushering in new wave of business transformation, similar or greater in scope to how the Internet and web affected businesses:

  1. People will increasingly rely on technology to connect, collaborate and accomplish tasks and goals. Embedded in user-friendly solutions, cloud, social and mobile technologies enable SMBs to connect, collaborate and engage anytime, anywhere to better serve their customers and to work more efficiently.
  2. IT is changing from a support function to becoming core most business operations, and business decision-makers are increasingly involved in IT decisions to ensure the business gets the value it needs from IT.
  3. Amidst the growing volumes of structured unstructured data, SMBs that have the rights tools to find the needles in the haystack and uncover useful, actionable information and insights will gain competitive and market advantages.
  4. As SMBs rely more on technology to run their businesses and engage with customers, partners, suppliers and others, taking measures to secure and protect data, information and access are increasingly essential to business viability.

Some of the tangible ways that Dell is helping SMBs capitalize on these changes include:

  • Becoming an über-cloud provider: Dell has been steadily expanding the Dell Cloud Partner Program to provide access and end-to-end support for offerings from multiple cloud vendors.
  • Offering open, private-cloud solutions, which should help give SMBs more confidence in using OpenStack as an alternative to proprietary IaaS and PaaS (infrastructure and platform as-a-service) alternatives.
  • Expanding portfolio of mobile management solutions, such as Enterprise Mobility Management, a unified mobile management solution to managed devices, apps, and content, and Secure Remote Access Gateway to protect endpoints.
  • New intellectual property gained from acquisitions such as SonicWALL, Quest, Boomi, Compellent and Force10 is skewed towards the SMB world. In fact, Dell views SMB and midmarket as an ideal focal point for development and acquisitions since it believes large organizations also want scalable solutions that are easier to deploy and use too.

Changes in SMB Technology Expectations and Behavior 

Fueled by the web, mobile and social access, Dell sees changes in how SMBs evaluate and shop for solutions. Today, SMBs are more prone to have done their homework before they come to the sales table. Armed with a greater understanding upfront, they are looking for vendors and partners that will listen to what they are trying to do and offer authentic, objective and knowledgeable guidance. In addition, Dell believes that simply doing the right things for people works. To that end, Dell prefers having its customers tell its story rather than Dell telling it. For example, Dell cites the tornado damage in Oklahoma City last spring, where Dell served as a first responder, as exemplifying its commitment to doing the right thing to earn customers’ faith in Dell.

Dell sees both the role of SMB IT and business decision-makers morphing. More frequently, line-of-business (LoB) managers are not only customers of IT departments, but also co-owners of IT. This means that IT staff must work harder to meet increasing demands, and become more educated and engaged in business operations and strategy than in the past. SMB IT personnel need more practical and actionable advice and support from vendors and their channel partners to juggle ongoing IT management with innovation.

SMBs are also scrutinizing “calculated risks” much more carefully. For instance, SMBs are interested in the cloud because of affordability and ease of access/use advantages, but want to ensure that cloud solutions are secure and reliable. SMBs are also more likely to factor business disruption into the cost/benefit analysis for any given solution. They are getting wiser about the perils of bad decisions and implementations, so the bar keeps getting higher to deliver solutions with less business disruption and faster time to value.

Finally, SMBs increasingly recognize that the technology-performance connection is real, and can be used to accelerate growth disrupt industry icons with innovation and agility. The perspective is summed up in Dell’s latest ad campaign. SMBs can use new technologies not only to reshape their existing businesses, but also to redefine the economics of an industry and expectation of the market.

However, one constant remains. Most SMBs need capitalize on these opportunities without putting themselves in financial or operational jeopardy. SMB budgets, IT staff and expertise aren’t often able to both maintain what they have and innovate within the window of opportunity. So Dell is focusing on designing, delivering, supporting and financing solutions that take these constraints into account.

Perspective: Dell as SMB Technology Catalyst

Dell’s journey to transform itself has been in progress for a few years. While on Wall Street’s watch, it wasn’t easy for Dell to recast its image from a transaction-oriented hardware company to an end-to-end solutions provider and trusted advisor.

However, Dell’s entrepreneurial heritage is once again alive and well. Michael Dell not only started the company in his dorm room when he was a 19-year old student at the University of Texas, but took it private in 2013 to gain control over its destiny again. With genuine DNA at the heart of Dell’s commitment to SMBs and entrepreneurs, Dell can take a longer-term view on return on investment in new technologies. This should enable it to launch more innovative and affordable cloud computing, mobile, social, analytics and security technologies geared to SMB requirements.

In addition, Dell prides itself on listening to its customers and creating a mutually beneficial dialogue. Dell’s Social Media Command Center is one of the best in the industry, and Dell’s SMB and partner outreach programs are extensive.

While Dell is still in the midst of its own transformation journey, its attitudes and actions when it comes to SMBs should help it to significantly broaden its status as a trusted advisor in this market.

 

Intacct Collaborate: Bringing Sales and Finance Together

This video interview was originally posted on SMB Group Spotlight. 

Laurie: Hi, this is Laurie McCabe from SMB Group and today I’m here on the SMB Spotlight at Salesforce’s Dreamforce 2014 Conference.  I’m talking to Aaron Harris, who is the Chief Technology Officer for Intacct.  Aaron, thank you for sharing time with me today.  Can you tell me a little bit about Intacct, who you are, what you do?

Aaron: Sure.  Thanks Laurie.  Intacct is a cloud accounting and finance solution that we have designed for small and medium-sized businesses.  We’ve taken a best in class approach, so all of our resources are targeted at building just what the accounting and finance team needs, the general ledger, payables, receivables.  We’ve got a strong relationship with Salesforce, so if you’re using Salesforce we’ve got a very nice native integration where Intacct and Salesforce synchronize data and processes and it’s a beautiful way to get your front office and your back office working together.

Laurie: So what are you highlighting here?  I know you have an announcement about some new collaboration capabilities with Salesforce.  What’s going on with that?

Aaron:      That’s right.  So at Dreamforce this year we are announcing Intacct Collaborate.  What Intacct Collaborate does it takes Salesforce Chatter and extends it into Intacct so that your sales and your marketing and support people who are using Salesforce today and who are collaborating on Chatter are using now the same network that the accounting team, the finance team, project managers are using on the backend.  So there’s one social network, there’s one collaborative network across the enterprise for the whole organization to work on.

Laurie: Good.  It sounds like that makes it easier for everybody to feed information into the whole financial process.

Aaron: That’s right.  There’s a lot pieces to it.  Obviously there are some great stories, right?  I’m a sales rep, I’ve got a deal that I want to get done, I need to get a 10% discount approved on that deal.  In the old world I’d write an email to the CFO, the CFO doesn’t know anything about what I’m talking about so the CFO has got to go do some research.  She responds to the email, there’s lots of back and forth, none of the communication is captured, right?  So it slows down the sale, it adds frustration, there’s no log to what happened.  So in this world that all happens via chatting and collaborating, and it’s all in real-time, it’s all captured, it’s all part of the record.  We also see this being useful within the accounting and finance team, getting them to collaborate over some of the more tricky business processes.  I was talking to a CFO the other day who said 20% of finance transactions are exceptional, they’re complex.  And we spend 80% of our time on those 20% of the transactions, the exceptions.  We have to find out what’s going on, what do we do?  Having Collaborate allows them to not only more efficiently communicate about these transactions and these exceptions, but it generates a log that you keep the communication around the transaction.

Laurie: I know Intacct is really aimed at small and medium businesses, but that’s a very diverse audience, so what segments of the SNB market are really the sweet spot for Intacct?

Aaron: Sure, so there’s really two categories of customers who are choosing Intacct.  The first is companies who have outgrown their first accounting product, usually it’s QuickBooks.  They’ll outgrow it when they need to automate processes that are manual.  Perhaps they’re now a multi-location business and it’s just too difficult to aggregate or consolidate data across the locations.  It might be that the reporting tools available in QuickBooks don’t give them kind of insight that they need, which product lines are the most profitable, which of my professional services engagements are losing money and which are making money?  This kind of insight is just not possible in some of the low-end products.  Or it may just be that this is a growing company that expects to go public, they need to have proper controls in place, they need to have a certain way they’re going to get through their Sarbanes–Oxley audits, so they need a product that will help them…

Laurie: Even if you’re preparing to be acquired or something like that.  If you sell the business you would need that.

Aaron: Exactly.  You need a product that cannot just assure external auditors that you’re following these controls, but that allows you to provide the evidence that you’re doing it.

Laurie: And that’s about half of your customers are coming from that.

Aaron: About half.  So the other half are people who have embraced the cloud.  They love Salesforce, they love some of the other cloud products.  They can see that with Salesforce they’re getting constant innovation, it embraces mobile technology.  You know what I’m talking about.

Laurie: Yeah, they just want to be able to do things on the fly, they way they want, on the device of choice.

Aaron: And no more headaches about hosting the infrastructure, that’s security, right?

Laurie: No, they don’t want to mess with that.

Aaron: So they want to take their accounting and finance processes and modernize them to the same extent as they already have sales and marketing.  So they’re choosing Intacct not just because it’s cloud and it gives them the same advantages they’re getting through Salesforce, they’re also choosing it because it’s fully integrated with Salesforce.  They’ve got the full front office/back office integration, data synchronization, process integration.

Laurie: It takes the integration headache away too.

Aaron: That’s right.  No more disconnect in the process.

Laurie: So how can a potential customer or prospect learn a little bit more or better evaluate whether this might be a good fit for them?

Aaron: The easiest way is to go to our website, go to www.intacct.com.  There’s a number of things you can do there, but maybe the easiest is just to get a trial.

Laurie: So you do still offer a free trial?  I think a lot of them don’t anymore

Aaron: We do.  We’re very proud of our product, we think it’s very easy to use, so get a trial.  We actually walk you through how to learn more.  It’s actually a really nice way to learn about Intacct.

Laurie: That’s great.  Well Aaron, thank you again for sharing that information with me about Intacct.  I think it will be really valuable for a lot of small and medium businesses out there.  Have a great rest of Dreamforce.

Aaron: Thanks Laurie.

Laurie: Thank you.

Intuit QuickBooks Connect: Where Small Business Is Big Business

This is part one of a two-part blog series discussing Intuit’s strategy to help SMBs better capitalize on technology. This first post provides perspectives from Intuit’s 2014 QuickBooks Connect event. The second post, Intuit’s Strategy to Bring Game Changing Technologies to SMBs, provides a detailed glimpse into Intuit’s approach in the SMB market.

QBconnectLast week, Intuit held its inaugural QuickBooks (QB) Connect event in San Jose. The 4,000-plus attendees included accountants, developers, small businesses, press, influencers and analysts. The agenda included a good mix of updates, announcement and inspiration from an all-star line-up of speakers. Below are my top takeaways from each of these areas.

Turning the Cloud Corner

While newer competitors, such as Xero, have made a lot of noise, they haven’t had much of an impact on the market. Instead, Intuit’s Small Business Group continues on its growth trajectory, especially in the cloud. QuickBooks Online’s U.S. subscribers grew 32% in 2014. QuickBooks is no longer just a U.S. solution, however. Intuit now sells QuickBooks in 124 countries, and has translated the solution into 12 languages. As of September 2014, the company has 705,000 paid subscribers for QuickBooks Online, and a total of 32 million customers worldwide.

cloudIntuit has clearly turned the cloud corner. In 2009, just 5% of new users were online, now the majority opt for QuickBooks Online over packaged QuickBooks products. In addition, 80% of QuickBooks Online customers are new to the Intuit universe, indicating the cloud version is doing a good job of pulling in net-new customers. The event signaled that Intuit will be doing more thought leadership as well, as evidenced by offering entrepreneurs one-on-one speed mentoring by Lean Startup Productions at the event.

Intuit’s QuickBooks Online development platform is also growing. Developer booths were in the spotlight at the event, and hundreds took Intuit’s Hackathon (link() challenge for a shot at winning a chunk of the $100,000 pot. Method:CRM took home the $55,000 grand prize for its Method:Donor app. Payments Cloud by Cloud Conversion, Safety Net by Jobber, and Service Titan won the $15,000 runner-up prizes.

Finally, Intuit’s Accountant Partner Network has always been essential to the vendor’s small business success. Throughout the event, Intuit speakers discussed “the power of we,” and ways in which the company is enhancing Intuit’s QB Accountant Edition to reduce the amount of time accountants need to spend on low-value data entry chores and increase the time they spend providing their customers with strategic business advice (some of which I note below).

Of course, the combination of a healthy pipeline of new QuickBooks Online customers plus a vibrant developer and accountant ecosystem bode well for continued growth.

Sometimes Less Is More

As Intuit CEO Brad Smith noted, Intuit is not focusing on creating more and more features for fewer and fewer small businesses. Instead, the company is looking for ways to make things easier for small businesses. According to Dan Wernikoff, senior VP and general manager of Intuit’s Small Business Group said, Intuit’s goal is to “make accounting completely invisible to small business owners.”

To that end, Intuit is plowing much of its R&D budget (which is about 16% to 17% of its revenues) into making its products simpler for small businesses, accountants and developers to use. Key announcements unveiled at the event included something for everyone:

Small businesses:

  • A full-service payroll solution, that handles payroll tax complexities
  • Automatic synching for bank and credit card transactions in QuickBooks Online
  • Easier ways to create reports, such as P&L and balance sheets in QuickBooks Online
  • Ability to accept credit card payments in QuickBooks Online in under a minute
  • A new payments offering that enables invoicing, accepting payments and updating books
  • A new QuickBooks Self-Employed solution to help freelancers, contractors and home-based business to separate personal and business finances

Accountants: 

The big news here was the new QuickBooks Online Accountant edition, which gives accountants the ability to work on their clients’ books anywhere, anytime and provides:

  • Customizable dashboards that provides snapshots of action items and deliverables.
  • Toolbox for one-click access to any client, from anywhere within QuickBooks Online.
  • Books-to-tax integration, so users can automatically push bookkeeping data to Intuit Tax Online.
  • Integration with Box, to give accountants a better, easier way to share content and collaborate with their clients.

Developers:

Intuit is striving to create a “drop dead simple environment” for developers to build and sell their apps. To that end, Intuit introduced:

  • New developer experience, featuring seamless cloud integration, new SDKs, and simpler documentation to make it easier to call on QuickBooks Online APIs.
  • New payments API to allow deep integrations with QuickBooks Online.
  • New Apps.com marketplace to enable developers to reach more QuickBooks customers with their solutions. Over 400 apps are already integrated with QuickBooks Online and available on Apps.com.

Inspiration On Tap

qbconnect speakersUnbelievably (this from someone who attends many events and co-manages a small business!) all the speakers featured at QuickBooks Connect were inspiring and informative. The speaker line-up was very diverse, but one commonality is that all are successful entrepreneurs. You can watch them on demand at www.qbconnectlive.com. Pearls of wisdom were flowing like water, but here are some of my favorites, which I hope will inspire you too! 

  • Arianna Huffington, chair, president and editor-in-chief of the Huffington Post: Stop wearing “busy” like a badge of honor! It’s not! Success is more than the metrics of money and power. We need health and well-being to be truly successful and happy.
  • Debbie Blox, CEO of Goldieblox, and winner of Intuit’s 2014 Super Bowl ad contest: You need to put yourself out there, and ask for what you need, because it takes a village to create a successful, sustainable small business! Be specific about what you want, and get advisors.
  • Tristan Walker, CEO of Bevel: You don’t get what you don’t ask for, and trials are really blessings in disguise.
  • Martha Stewart, founder and Chief Creative Officer of Martha Stewart Living Omnimedia, reminded us that we need to work really hard to be successful but must be compensated fairly for our hard work, and that once you’re through changing–you’re through!
  • Clif Bar CEO Kevin Cleary: Find people who share your passion and empower them to break things. The future of business is to upend the unacceptable.
  • Marc Andreessen, cofounder and partner of Silicon Valley venture capital firm Andreessen Horowitz: There’s a pivot happening with web, cloud and mobile enabling small businesses to use tech more aggressively.
  • Earvin “Magic” Johnson, chairman and CEO of Magic Johnson Enterprises and NBA legend: Have the courage to say I don’t know everything and to get help! Also, know your customer, serve them well they’ll keep coming back
  • Scott Cook, Intuit Founder and Chairman of the Executive Committee: Every one of Intuit’s successful businesses takes off via word of mouth.
  • Brad Smith, CEO of Intuit: We strive to be the operating system behind small business success.

Perspective

Intuit may have been born in the era of green screens and DOS, but it is now all in with solutions for today’s cloud, mobile, social and analytics technologies. However, one thing that hasn’t changed at Intuit is its commitment to helping small businesses thrive. This combination of strengths bodes well for fueling the next era of innovation for Intuit and for small businesses.

Disclosure: Intuit paid for most of my travel expenses to attend QuickBooks Connect.

Follow

Get every new post delivered to your Inbox.

Join 12,969 other followers