Intuit and Microsoft have joined forces to create new Web applications to automate a number of tasks for small businesses, such as tracking expenses or managing documents.
The companies plan to integrate the Intuit App Center online application store with Microsoft's Windows Azure cloud application deployment platform, enabling development of applications on Azure for access via App Centre. "What we're doing for the developer is combining the Intuit Partner Platform and Azure," said Alex Chriss, director of the Intuit Partner Platform. Services will be provided for the applications including billing, authentication and data APis to connect to QuickBooks.
In return Azure becomes a "preferred platform" for small business cloud application development on the Intuit Partner Platform. "This is basically bringing the Azure platform to all of those developers so they can quickly build cloud applications and have them integrated into the QuickBooks data stores," said Kim Akers, general manager of evangelism at Microsoft. "Then, [developers] have a channel so they can sell those applications that they just built."
The alliance should present clear opportunities for both parties. “Cloud-based collaboration services (e-mail, Web conferencing, virtual workspaces and instant messaging) appeal particularly to SMBs struggling with the economics and resources required to deliver reliable on-premises services,” noted Eric Knipp, senior research analyst with Gartner Group. “Microsoft has an opportunity to capture SMB business for its collaboration suite via access to the customers the partnership with Intuit provides. This will give it an advantage over archrival Google in the race for cloud collaboration market share.
“Although Intuit's offerings are not relevant for most large enterprises because of the class of customer it tends to serve, the partnership is potentially a valuable channel for Microsoft. Intuit claims that about 4 million SMBs use QuickBooks. IPP provides independent software vendors (ISVs) with an avenue to reach these customers with software-as-a-service (SaaS)-style solutions. Developers can use IPP programmatic interfaces to federate applications hosted on external non-IPP platforms to reach the QuickBooks audience. Windows Azure's designation as a preferred platform, with prebuilt integration in the form of a software development kit, will likely drive developers to view it favoruably when building IPP applications.”
Knipp pointed out that ISVs are always critical to the success of any new Microsoft platform offering, including Windows Azure. “ISVs that shift business models toward multitenant SaaS applications on the future Windows Azure AppFabric platform will partly cannibalize Windows Server revenue,” he said. Microsoft must walk a fine line between incubating 'green shoots' in its cloud businesses and challenging its established cash cows. The partnership provides initial evidence that Microsoft is working to grow the ISV Windows Azure platform ecosystem despite the risks it poses to the growth of Windows Server revenue.”
Microsoft had tried to acquire Intuit in 1994 but later abandoned the effort after facing opposition from the U.S. Department of Justice.
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