Intuit Finally Endorses QuickBooks Hosting

For years, companies like InsynQ and Right Networks have been providing QuickBooks
hosting services, but now that Intuit has finally announced a program whereby
the vendor will qualify, license and support companies who host QuickBooks,
I predict there will be a new surge in adoption of hosted QuickBooks by both
accountants and clients.

Some firms don’t yet see the benefit of moving off their local desktop/LAN
systems because they have in-house technical people to keep everything running
smoothly, and they’ve figured out other remote access solutions to facilitate
the accountant/client collaboration. However, even if firms have all that figured
out, most likely they’re providing lower service levels and less security
for their clients than would be the case if they switched to using a quality
hosting provider.

WHAT IS A CLOUD COMPUTING SERVICE?
The term cloud computing service refers to a category of companies who provide
access to computers (servers and desktops) “in the sky” (i.e., on
the Internet) that run a variety of Windows software. Customers access those
computers via the Internet. Applications available from these services include
Microsoft Office, QuickBooks, QuickBooks add-ons, and other software by customer
request. Their services ensure that the software and hardware is managed, backed
up and always available via the Internet.

A BRIEF HISTORY OF QUICKBOOKS HOSTING
Intuit has been nearly silent on the issue of hosted QuickBooks (the desktop
versions of QuickBooks) for years. The legalese in the QuickBooks software license
agreement purportedly prohibits hosting, but there are probably more than 100
companies that are and have been hosting the software since the late 90s. And
up until now, if you requested support from Intuit for a hosted version of QuickBooks,
you would have been told that you were violating your license agreement and
that Intuit could not provide support. Of course, there were thousands of users
in that situation, so it has been a really gray area for more than 10 years.

Because of this legal ambiguity and lack of either endorsed licensing from
Intuit or enforcement of the violators, many of us in the accounting profession
just steered clear of using and/or recommending hosted QuickBooks. Most of us
saw the compelling benefits, but we were concerned that without clarification
on the licensing from Intuit, we might somehow end up as unwitting participants
in the violation of Intuit’s software license agreements. That was a risk
many of us just didn’t want to take.

A CLEARER ROADMAP FOR THE FUTURE
The good news is that now we have a clearer roadmap for using hosted versions
of QuickBooks. There are three hosting companies so far who have jumped through
the technical and legal hoops to obtain hosting licenses from Intuit. These
Intuit-authorized, QuickBooks hosting companies are InsynQ (insynq.com;
cpaasp.com), Right Networks
(www.rightnetworks.com),
and Uni-Data Communications (www.unidatait.com).
And now, as of February 2010, Intuit has opened the door for other companies
to qualify and obtain licenses to host QuickBooks.

An important benefit users realize by working with a licensed hosting provider
is the ability to “rent” access to QuickBooks and pay only a monthly
rental fee as opposed to purchasing a license for several hundred dollars up
front. The program allows authorized hosting companies to provide customers
with access to all Windows (Windows only) versions of QuickBooks including QuickBooks
Pro, Premier and Enterprise Solutions. One important constraint of the program
is that it requires hosting companies to limit their offerings to just the “Intuit
supported” versions, which means they can only provide the currently shipping
versions of QuickBooks and the three most recent year’s products.

The program also provides a way for accounting firms to legally “Self-Host”
QuickBooks for their clients; however, I would seriously consider the requirements
before going down the self-hosting path. In my opinion, for an accounting firm
to self-host QuickBooks for more than just a few clients would be about as crazy
as hiring programmers to write tax software so you could prepare taxes. The
complexities and ongoing maintenance required to provide high-quality hosting
services should be left to companies who make that their business.

The key to the success of this program will be driven by two things. First,
will all the unlicensed hosting companies sign up for the program, pay the fees
and abide by Intuit’s rules? Secondly, will Intuit enforce their license
agreements on hosting companies who are not licensed? We’ll be watching.

For details on the hosting program, visit the Intuit web site at quickbooks.com/franchisesolutions.