Feeds

Reckon dumps Intuit for local strategy

Global cloud does not add up

  • alert
  • submit to reddit

Top three mobile application threats

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 .

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Brit boffins use TARDIS to re-route data flows through time and space
'Traffic Assignment and Retiming Dynamics with Inherent Stability' algo can save ISPs big bucks
Microsoft's Nadella: SQL Server 2014 means we're all about data
Adds new big data tools in quest for 'ambient intelligence'
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.