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THE FUTURE OF OLD WHITE GUYS
Intuit got the accounting trade press and consultants to Lacerte-Land in Plano, Texas this week, where it trotted out a tent full of dogs and ponies, those in the form of almost every Intuit product on the market that’s aimed at accounting firms. But the Think Tank part of this event, aimed at eliciting what this group thinks will happen by 2020, has value for VARs.
Shifting demographics was one of the top factors mentioned by most participants and that involved the increasing percentage of woman in accounting firms and the growth of minorities such as Asians and Hispanics as a percent of the U.S. population. Like accounting firms, the VAR leadership is still largely in the old-white-guy class, and getting older. While accounting has gotten sexier, with more young people entering accounting schools, reselling hasn’t. But companies often buy from companies run by people who are similar in age, language and background. What does this mean for VARs? Part of the reseller problem is the model. Accounting firms have revenue streams that are predictable, while VARs have license revenue that isn't. The inability to cash out coupled with the lack of profitability of firms in a cut-throat market keeps this business from being more attractive to younger professionals. The switch to Internet-based products is helping by bringing in new blood and perhaps subscription-based revenue will solve many of these issues.
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