NetSuite has begun rolling out its Business Operating System, a software-as-a-service application development system for software developers, independent software vendors and value-added resellers

About 25 years ago, a new trade newspaper entered a market serving what were then called computer specialty stores. As they say in the business, it was the fifth book in a seven- book market in terms of the measurement that counted—advertising revenue. When it went out of business in 1989, Computer+Software News was the No. 2 publication in a two-book market. Now, it’s a no-book market. That’s because computer specialty stores don’t really exist anymore. These were the stores best known through the chains such as ComputerLand and MicroAge that started out primarily selling hardware, but got squeezed out by direct sales organizations like Dell Computer and the mass marketers like Computer Depot. That one magazine left in that market was then called Computer Reseller News, and although other publications came and went, CRN, as it came to be called was the only one left from the mid-1980s. And it doesn’t really do the same thing, and in the face of the Web, has cut back its once-weekly frequency. That scenario comes to mind many times when I talked with VARs who sell mid-market accounting software. They could disappear in just the same way, or change so much that they aren’t the same kind of businesses. The reason for indirect distribution, the use of resellers, occurs because the cost of some products is low enough that the manufacturers can’t afford to employ sales forces to sell them. The Web changes things since there’s no software to physically distribute, and it removes some of the rationale for using VARs. There has already been talk, since as a prediction a few years ago by Doug Burgum, the longtime head of Great Plains and then Microsoft Business Solutions, that the market would some day have margin-less software. Certainly, the trend from vendors is always to reduce profit margins. And then there are the conflicts between vendors, whose direct sale forces can offer cheaper prices, and the resellers selling the same products. There are credible reports of serious conflict between resellers and the sales forces for NetSuite and Sage Software. It’s too early to predict these factors will result in the end of software reselling as we know it. But it’s something that could happen.

Backup and recovery are critical for anyone who is building a data-protection structure. From the earliest days of computing, setting aside a recoverable second copy of essential business data has made the difference between a business' survival and its painful death.

INTUIT'S ACCOUNTANT STRATEGY

While many view the terms leadership, management and administration as synonymous, significant differences exist among them.

Accounting firm Somerset CPAs has launched a blog to help its team members, clients, referral partners and community stay in touch.

Sage Software introduced a program to support users of its Peachtree by Sage software with extra support for Microsoft Excel.

Sage Software has extended its Business Partner Alliance program to encourage resellers and accountants to work together more closely.

On-demand software developer NetSuite reported 2007 revenue of $108.5 million, a 62 percent increase over 2006.

Intuit recently issued a press release announcing the winner of its “Just Start” program for small businesses that may have drawn stares in large sections of the country. Or at least a slight puzzlement. The release told the story of restaurant owners who will receive $40,000 in cash and $10,000 in products and services from Intuit as part of the “Just Start” contest.

As the marketplace for business planning software matures, it is being cleanly divided into two separate branches. The first addresses the needs of established companies that are looking to validate the performance of the company and gain insights into decisions for growth, acquisitions and business valuation. The second more directly meets the needs of entrepreneurs and small businesses that are seeking initial or additional funding, or otherwise need presentation pieces to demonstrate business performance.The tools for mature companies are now termed "business intelligence" or "corporate performance management" software, and the tools for small business go by the historical name of "business planning software." Both categories utilize historical data to make forward projections that are charted graphically for quick comprehension (often through a management "dashboard"), though business planning software contains more descriptive text.

MACDONALD JOINS DELTEK

I am often asked what differentiates firms that are successful with technology from those that struggle. My standard response is that firms struggle with technology when they view it as overhead, but they invariably profit from it when they value it as a strategic asset.

The Microsoft reseller was quite candid—Sage Software’s MIP nonprofit package was better than what Microsoft offered for the same purpose, and less expensive. Similarly, even though the latest version of Microsoft Dynamics CRM 4.0 was substantially better than the previous package, it was still nowhere as good as Sage’s SalesLogix.

Intacct said it has achieved record growth in 2007, thanks to demand for its software-as-a-service applications.

Intuit has introduced an online resource for small business owners, “The Guide to Hiring and Paying Employees.”

Thomson Tax & Accounting has debuted OneSource Tax, a portal that helps corporate tax departments access tax tools, manage their workflow and keep track of information.

Sage Software has launched a new Act! by Sage Online Community to provide users with a place to share information through a variety of themed discussion forums and blogs covering best practices, product usage tips and feature requests.

Sage Software named MIS Group as its overall business partner of the year for 2007 for North America.

Attitude POSitive introduced a new version of its AccuPOS Retail Point of Sale software with new features for small and mid-market retailers for streamlining sales and back-office processes.