Feeds

Reckon dumps Intuit for local strategy

Global cloud does not add up

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

ASX listed accounting software company Reckon has severed ties with US-based Quickbooks supplier Intuit, following a falling out over strategic direction and hosting priorities.

Reckon and Intuit secured an alliance in 2010 for the marketing and distribution of Intuit’s range of desktop products which included a termination caveat in the case that either party’s online strategies were steering off course.

In a statement to the ASX on Friday, Reckon said that as a “consequence of the gradual divergence since then of our respective online ambitions, Reckon Limited advises that we have entered a notice period, at the end of which, on 10 February 2014, the licensing agreement will be formally terminated.”

The Australian software developer added that further online products are in development and will be rolled out over the coming months including its own Cashbooks product, a software-as-a-service (SaaS) product hosted in a private cloud. Reckon’s strategy remained to provide “fully localised products specifically for our markets, hosted locally,” for accountants, bookkeepers, and their business clients.

"The business dynamics have changed over the last few years, with a very focussed cloud based strategy now required. As a business, Reckon needs to be ever more flexible with our product offering and the territories within which we operate,” Reckon chief executive Clive Rabie said in a statement.

He added to local press that a significant part of the concern over the continuation of the alliance was that users’ data would be hosted offshore and in particular Asia and Europe or the US and subject to the law of those jurisdictions.

“If you go onto the Azure platform then your data is stored in Europe, or America, and we’re not comfortable with that. We’re not even comfortable having it in New Zealand, we want users’ data here,” Rabie told SmartCompany.

After February 2014, Reckon will effectively enjoy royalty free rights to continue selling, and may independently develop, the then current Intuit desktop technology and QuickBooks Hosted technology for a 100 year period. The company estimates that this will result in an annualised royalty saving of about AUD $6million .

Beginner's guide to SSL certificates

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.