The preliminary analysis shows that in the Bob Scott's Top 100 VARs for 2015 that 55 of those listed carry cloud products. That's a jump from 44 last year. We'll get into the final numbers later (allowing for last-minute checks for publication next Friday). But the cloud has yet to penetrate the Top 20 firms significantly. Out of that 55, only six are in that biggest group and this seems attributable to the fact that many Dynamics resellers are staying loyal to Microsoft. Twenty-eight members of this year's class carry only Dynamics products and that includes 10 of the Top 20.
I have concluded from observing the photos on websites that the primary users of accounting software are very attractive young people. ... Got a recent email from an unhappy subscriber to the Progressive Accountant. "DROP DEAD, YOU SCUMBAGSSSSSS!!!!!!!!!!!!!!!! I replied, "Which of our Scumbags do you have in mind?" ... One of those endearing moments with your spouse: My Wife: I don't think our daughter will ever learn to change how she does things. Me: Gee, I wonder where she gets that? On the same theme as the last post: she wanted me to take the recyclables from the back porch to the street.
Microaccounting/xkzero has picked up Intacct's cloud accounting application. We can probably set up a form: [Name of Sage reseller] has begin selling [name of cloud product]. Microaccounting says it is making a formal announcement next month. There won't be many Sage loyalists left by the end of the year. ADSS Global said earlier this year it was going pure Sage, after parting ways with NetSuite. I can't picture that as a trend. There four Sage-only resellers on my Top 100 VARS this year:
Technically, Xero's customer base has grown more rapidly than Intuit's. Xero ended its year on March 31 with 475,000 subscribers, up 67 percent over a year earlier. Intuit ended its third quarter on April 30 with 965,000 QuickBooks Online subscribers, 54.6 percent higher than on the same date in 2014. Intuit is a far larger company than Xero and you would expect it not to grow nearly as fast. In the meantime, during this year's webcast of earnings, Intuit CEO Brad Smith was asked for a figure I have not heard before—QBO retention.
Sage's chief revenue officer Rich Spring spent time in a channel briefing call this week apologizing. According to participants, he promised an open-door policy. As reported by an attendee, Spring said, "There is not a version of a successful future that does not include Sage working with partners/VARs in a positive way." There are a lot of things that need to be recovered from. Some of these steps, one source said, were a change in channel policies and was "almost certainly a big clue why Joe Langner isn't here any longer."