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INTUIT; QBES VARS PROFIT WITH NEW MODEL

VARs that use the traditional mid-market model of selling software, but make money on services, won't be successful with QuickBooks Enterprise Solutions, according to BJ Schaknowski who heads Intuit's reselling operations. And while Schaknowski said Intuit is selling tons of QBES, I don't think his remarks differ from the assessment made by many mid-market VARS, which is that they can't make money on the product for the same reason.
The question is how many have adopted a model to sell QBES and I don't think it's a lot. According to Intuit, strong sales of Intuit's midmarket package are coming from all its channels, including direct. But the VARs who tell me they are inactive with QBES are a very strong group of performers so I still think it's the QuickBooks ProAdvisors who are growing into VAR roles that are producing a good deal of growth. And while Schaknowski minimized reports of channel conflict, but that has clearly had some impact. Meanwhile, Intuit is, not surprisingly, finding software VARs aren’t that interested in working with the distributors it signed last fall. And equally not a surprise is that those handling QBES POS like distributors as their sales involve hardware, which is what the distributors are better at.
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