by: rick telberg
june 27, 2000 (smartpros) ? with the heavyweights moving into the remotely hosted software business, it’s only a matter of time before it takes hold. and the time is fast approaching.
using a so-called applications service provider, independent or corporate accountants can supposedly get all the benefits of the latest software, without the headaches of networking, upgrades or maintenance. some packages are being pitched for as little as $4.95 a month. and the big boys are climbing into the market.
computer associates’ accpac, for instance, has just launched accpac online, which it bills as “the e-business resource center for small and medium-sized enterprises.” accpac online will host accpac accounting and, jumping on bill gates’ bandwagon, microsoft office 2000.
meanwhile, upstart intacct corp. is rolling out its “professional-strength web-based accounting service.” the company says its service “is designed for companies that need more than an entry-level pc-based accounting package but want an alternative to complex, it-intensive client/server solutions.” like others in the category, intacct is a subscription-based accounting service operated entirely over the internet, which gives users access “anytime and anywhere” via a browser. in a public relations coup for a start-up, intacct also unveiled a deal with deloitte & touche to “co-develop the industry’s first web-based auditing tool that integrates with clients’ accounting workflow.”
intacct’s core services are available at a subscription price of $49.95 per month, which includes access for two users and 10 megabytes of storage. meanwhile, for just $4.95 a month, netledger will give you scaled-down general ledger software.
the company, operated by former intuit and peachtree talent, has just closed on $20 million in new financing, led by starvest partners and including netledger chairman larry ellison, oracle founder and chairman. netledger said it plans to use the capital to “expand marketing efforts to accelerate customer acquisition,” broaden netledger distribution channels via strategic alliances, and continue developing its technology and services.
in the web world, great plains is starting to look like a grand old dame of the business. but not to be outdone, the company has acquired purchasingcenter.com, an “e-marketplace” of 150,000 maintenance, repair and operating supply items. great plains reseller the taylor group created it.
and there’s no doubt that intuit will jump into the fray with a web version of quickbooks any day now. “stayed tuned,” one executive has said. quickbooks’ main rival peachtree became available in an asp version earlier this year.
watch for movement, as well, in the tax arena. cch is rolling out prosystem fx for beta testing next tax season with a general release later in the year. it will go head-to-head with gosystem r/s from ria group.
the asp model will be slow to catch on at first among accountants. accountants have understandable reservations about security, round-the-clock accessibility, and any software version that starts with the number one.
but the application service provider industry is expected to reach $9.7 billion in annual revenues by 2004, up from $1 billion last year, according to kennedy information research group, and accountants won’t be left behind.