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INTUIT'S QBES KEEPS BOOMING

Brad Smith, Intuit

Intuit's QuickBooks Enterprise Solutions continues its act as the company's Energizer Bunny. It just keeps going. Intuit ended the third quarter on April 30 with 64,000 active QBES customers, which was up 18.5 percent from the 54,000 at the end of the quarter a year earlier.

Since Intuit this weekend trotted out a renewed reseller program, I feel like saying "Does Intuit really need resellers?" It is pretty clear that the traditional midmarket VARs largely walked away from QBES a couple of years ago because of competition from Intuit's telemarketing sales. What is left seems heavily weighted towards ProAdvisors who became resellers, which is probably part of the reason Intuit tiered the Intuit Solution Provider program into authorized and premier VARs. Some of those ISPs who are better off as ProAdvisors will probably be steered back there. The quarterly results followed a long-term trend in which active customers - those on maintenance - increase by 2,000 to 3,000 each quarter. Otherwise, QuickBooks units dropped to 491,000 units sold in the quarter, down from 493,000 a year ago. However, CEO Brad Smith said QB overall was healthy with double-digit revenue increases. But despite the growth in QB Online, that product still has issues. "We are having some operational and executional challenges that we are working in our website business," he said.
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