Work In The Cloud & Rent Your QuickBooks License

Working in the cloud with an Intuit authorized hosting provider gives professionals many advantages, including the ability to rent their QuickBooks licenses. Leasing QuickBooks on a month-to-month basis is great for people that upgrade their version every year since it saves time and is more affordable than purchasing a new license every year. It also makes adding temporary employees or outsourced bookkeepers easy. Bundling a QB rental license with a Microsoft Office rental license is a quick, affordable way to get working in the cloud on a Virtual Desktop today.

Maybe it’s time to upgrade your hosted version of QuickBooks Pro or Premier to a currently supported version. Or maybe you’re thinking about moving some or all of your clients and employees that use QuickBooks to the cloud so they can start working from anywhere, anytime and be more productive. Either way, renting a license and hosting your QuickBooks Pro or Premier with can save you time, money and get you safely working in the cloud today.

Click here to learn more about renting your hosted QuickBooks license in the cloud from one of the leading Intuit Authorized Hosting Providers.

Hosted Applications: Public, Private and Shared Services

Hosted Applications: Public, Private and Shared Services

When managers and owners begin to look at managed services, application hosting, and cloud solutions for the business, how do they know which “flavor” will best suit their needs?  If they don’t really understand what the terms mean, they may not end up with the delivery they intended.  Because there are so many and varied definitions of what “cloud” is, even the terms like public, private, and shared may take on various meanings.  So, in order to try to be as clear as possible, I’ll focus on the application hosting model, and the approaches taken by the community of providers recognized by Sage and Intuit as Commercial Hosts for those respective solutions.

First, a brief description of how the application hosting services generally work:

Your PC becomes the rough equivalent of a “dumb terminal”, which connects to the host servers via the Internet.  On the host systems is where the applications run and the data is stored.  The host computers serve up your “desktop” and/or applications, and store the associated data.

When you connect to the host systems, you might be connecting to a single desktop/application server, or you may be able to connect to multiple eligible systems.

If you can connect to one or more servers with a standard set of applications or services, and if different users from different businesses also connect to these servers, then the solution is generally referred to as being “shared” or “public”.

If you may only connect to the server or environment which has been customized for your organization, then you have what is referred to as a “private” or custom solution.

Generally, “shared” systems are simply servers with a consistent set of applications and services available on them.  Possibly part of a “load balanced” series (where each user is directed to the least-busy server upon login), these shared servers often deliver the services most frequently subscribed or the applications which are most frequently used by the customer base.  Shared services may offer the highest levels of fault tolerance, because there are multiple eligible systems the user can log in to.  If one system becomes unavailable for whatever reason, users may be reconnected or “balanced” to the other servers in the pool, virtually eliminating (or at least significantly reducing) downtime.

Custom deliveries, often referred to as “private”, are really just systems which are designed to carry a specific set of users, applications, services, or some combination of those.  Customers who desire to have a unique mixture of applications hosted, for example, will subscribe to private cloud services, where they can have their selection of solutions implemented without concerns of interactions or interference from other businesses, user groups, or product installations.  Once a business has a “private” environment, it is usually easier to then continue to add customized or new applications to the mixture, as the only community being impacted is the subscriber of the environment.

Regardless of whether or not your desktop and application servers are shared, your subscribed data storage facilities may be positioned differently.  Much of this is due to the requirements of the applications.  Some applications use standard database server environments, such as Microsoft or Pervasive SQL, while others may use more proprietary database or data formats.

The various data service requirements will often be handled by different servers or machines in the network, so your data could easily be distributed amongst a variety of machines, each handling the data requirements for specific data management services or platforms.

Whether or not your data is stored on “shared” servers or systems, it is generally secured and “virtualized” for your organization to prevent visibility and/or access by others.  Centralized storage and management of data is essential to the service provider, and allows for backup, virus protection, data security, and other areas to be addressed efficiently and effectively.  There are other issues, however, which must be weighed against management efficiencies and resource utilization in order to deliver a quality and consistent experience for the customer.

How data is managed by the service provider is key to understanding what fault-tolerance and recovery options you can expect.  Other issues which may impact fault tolerance are revealed in the various methods of approaching data management on the host.  As an example, running multiple SQL database applications may suggest that the service provider should consider using an Enterprise SQL Cluster to increase fault tolerance, density and performance of all hosted SQL databases, rather than approaching each database environment as an individually managed object.  When economies of scale can be developed to increase the overall capabilities, it delivers a more robust experience for the customer and increased efficiencies in the technical environment.

Alternatively, some situations may warrant more, not less, distribution of data services.  The QuickBooks database manager (Sybase) is a great example of an application driving this need.  Because there are a number of issues with the QB database managers, it may make sense for the service provider to have a number of different data silos for QB data, rather than a single large facility.  The effects of database manager crashes and stalls might be mitigated if users are segmented across multiple DB managers.  Distributing the base across multiple DB managers allows for most customers to remain unaffected in the event of failure or crash of one of the DB managers, but also increases the data management requirements and costs for the service provider.

The truth is that there is no single correct approach for delivering hosted/managed application services.  The market, users, and applications, coupled with platform and delivery system factors, provide enough variables that there is not and cannot be (at least, in the foreseeable future), one size which fits all.  There are, however, approaches which deliver consistent and fundamental capabilities to broad market and user bases.  The applications businesses need, and the specific weird and unique requirements of those applications, will continue to drive the varieties of delivery modes and methods which service providers will continue to offer to their business customers.  This is where the trust and experience of the provider becomes essential in understanding how best to craft the underlying technical delivery for each application and customer requirement.

Get more information on hosting solutions for QuickBooks, Peachtree, Simply Accounting and more at www.cpaasp.com

Intuit-authorized Commercial Host for QuickBooks; Sage-authorized Hosting Partner for Peachtree and Simply Accounting; authorized Sage ACT host; Microsoft SPLA hosting provider with Datacenter facilities in the US and Canada.

Get the complete information on QuickBooks hosting…. don’t believe everything you hear.

With the inception of the Authorized Commercial Hosting program for Intuit QuickBooks, a great deal of competitive messaging was introduced to the market.  Various hosts and providers are marketing for your business, and the same caveats that exist elsewhere in the market exist here in no lesser degree: let the buyer beware.  Due diligence is key to getting the service you really want, and you should listen carefully for the clues that may reveal the underlying truth about the service or provider you’re looking at.

At the Intuit ISP Summit, for example, there was a lot of information floating about regarding “the one and only host for QuickBooks Enterprise”.  Generally, this type of obfuscation by the provider’s marketing department wouldn’t bother me (I see it all the time), but in this case, it is not good information and leaves a lot of channel participants wondering what their realistic options are.  ISPs in particular need to understand their options for delivering QBES products, because that’s the lifeblood and revenue opportunity for the channel.  Selling the solution direct-to-market competes with the channel, and reduces options for implementation and long-term product support.  The hosting community can be a valuable partner in the business model, but it’s important to partner with a provider who understands your motivations and concerns, and who has aligned their service model to your greatest benefit.

My suggestion would be to vet out your potential providers, and ask them about their position or placement in the market and in the Intuit hosting program, as well as doing the necessary investigation into their delivery model, protections, and application and support offerings.  If they tell you that they’re the only ones who can do this… be wary.  You don’t want to start off an important business relationship based on half-truths.  It doesn’t bode well for the long-term.

Truth Number One:  NO Intuit-authorized provider has allowances or grants beyond any other.  This means that each and every hosting company authorized by Intuit as a Commercial Host for QuickBooks can lawfully offer:

1. hosting for QuickBooks Pro and Premier Editions, supported versions only
2. hosting for QuickBooks Enterprise Edition, supported versions only
3. subscription rental (some call it lease) licensing for QuickBooks Pro and Premier editions

Truth Number Two:  Intuit’s website lists the authorized providers and the program general guidelines.

1. The listing can be found at http://www.quickbooks.com/franchisesolutions  and then linking to the “Intuit Hosting Program” tab
2. Authorized QuickBooks hosts, as listed by Intuit, are:

• Right Networks. Telephone: (888) 417 4448
• InsynQ, Inc. Telephone: (866) 206 1781
• Uni-Data & Communications, Inc. Telephone: (718) 445-5600 x3180
• Xcentric Telephone: (678) 297-0190
• Cloud9 Real Time Telephone: (888) 869-0076
• Coaxis International, Inc. Telephone: (850) 391-1022
• myownasp. Telephone: (800) 521-7322
• NovelAspect.com. Telephone: (888) 228-0143
• Swizznet. Telephone: (888) 794-9948
• HarborCloud.  Telephone: (877) 294-2909

Truth Number Three: Intuit has selected a “private label or co-brand” partner to offer limited QBES hosting services under Intuit’s brand.

1. The partner, Right Networks, offers QBES hosting direct to market as a service branded and priced by Intuit… many say in direct competition with the ISP network and reseller channels.
2. Hosting of QuickBooks Enterprise editions is NOT limited to this provider.
   (view additional option for hosting QuickBooks Enterprise)

Got it?

QuickBooks Hosting Program and Large Accounting Firms – is there a fit?

The Intuit QuickBooks Hosting program was designed to create a consistent operating and reporting framework for providers offering application hosting services for QuickBooks desktop applications.  This framework addresses a number of elements of the service model, including but not limited to essential security, system architecture, information privacy, and software licensing.  While the hosting program includes options for commercial providers and “self-hosts”, this article will focus on the market segment not effectively addressed by the program: large firms where several hundred client users may be involved.

According to the Intuit website, the Intuit self-hosting program is for businesses with an existing professional relationship with Intuit, either as a Certified QuickBooks ProAdvisor or as a Certified Intuit Solution Provider.  These providers may, under this program, be eligible to offer application hosting of QuickBooks software and associated data management services to customers to whom the professional is also providing bookkeeping or accounting services.

The key element in the QuickBooks self-hosting program, the element which makes the program not work for certain larger firms, is the limitation on the number of clients the provider is allowed to provide hosting services to.  The program cites the limit of two hundred (200) clients, or client businesses, with a limitation on the total number of client users at four hundred (400).  For most firms, this limitation is not a barrier to participation in the program, as they have fewer than two hundred businesses in their client base which would utilize hosted QuickBooks services.  For other firms, however, this limitation puts them at a disadvantage, forcing them to either accredit as a commercial host under the program (an expensive and time-consuming effort, and an effort not entirely appropriate for many accounting firms), or purchase services through an existing commercial host.

Partnering with and purchasing through a commercial host is probably the right answer, but at face value, the cost seems pretty high.  Once a firm racks up a bill of $10K per month to service 250 client businesses, it feels like a lot of money.  In the scheme of things, that per-client cost is likely negligible in terms of the efficiency savings and access to additional work, but the first glance is the one that sticks with people.

The unfortunate reality is that, with the limitations on the number of clients a firm can provide hosting for balanced against the costs of working with a commercial provider, many larger firms simply elect not to participate in any of the programs.  At the moment, there is not a visible enforcement effort on the part of Intuit to make any providers of QuickBooks hosting “come clean” and join the programs, so a number of firms are simply continuing to do what they’ve always done – which sometimes includes walking a fine line in terms of license compliance.  But I believe there is risk in that approach, and professional firms should investigate all of their options.  While visible enforcement may not be there today, those working in this service area know that a storm is brewing.  Particularly with Intuit now offering their label on hosted QuickBooks Enterprise (delivered by a 3rd party provider and offered as a direct competitor to the ISP channel and to the hosting programs, but that’s another story), we can all bet that enforcement will come eventually.  With no enforcement, Intuit reduces the value of their own offerings.  Rather, I see the eventual enforcement of the program participation and rules as being a key to Intuit’s success with the program long term.  And, there’s too much money at stake and far too many folks still – uh – leveraging licensing (leveraging is a much nicer way to say “stealing”, don’t you think?).

So, with the costs and complexities of the commercial program being a barrier to professional service firms (either with participating in the program, or purchasing through a program participant), and with the limitations on the self-host program not meeting the needs of the larger firms… how is the large firm going to address the needs of those QuickBooks-using clients?

Unfortunately, I don’t have the perfect answer here.  I wish I did, but I’m not making the rules, Intuit is.  I think it’s important to play by the rules, even if you have to find a way to make them work for your business.  Sometimes that’s where the real innovation comes in.

So – rather than trying to find a way to make the current business model fit into the box that Intuit has built, maybe it’s time to take a slightly different approach – one that’s out of the box.  After all, with the popularity of the cloud and all the good reasons why businesses should “focus on their core competencies and outsource those that are non-core”, it may be time to rethink your strategy when positioning those QuickBooks-using clients.  Maybe being the IT and accounting service provider is not the right answer.  Maybe, just maybe, it’s time to separate the two, and simply let the client make the choice.  Electing to not use the suggested platform of the firm could result in higher accounting fees or rates..why not?  You lose efficiency when you work with clients who demand offline, paper, manual interaction.  Maybe the fees should reflect that reality.  You’re giving the client the choice, right?  It seems that they will end up paying one way or the other… either paying for the hosting service which enables an efficient working relationship with the accountant, or paying higher fees because of the extra time and effort it takes to get, manage, and do the work.

Consider, for example, why the client uses your services.  Accounting is not their core competency, and it’s not what their business is about – but it’s necessary.  So, they outsource that part of their work to a professional.  This allows the business owner to focus on their business, and not on bookkeeping and/or accounting.  The same philosophy is true with respect to technology.  Most businesses aren’t in the IT business, so the consideration to outsource IT management and services isn’t really a stretch.  In fact, most businesses outsource their IT management now by using outside computer technicians.  It’s just that they only outsource the management, and not the entire IT problem (e.g., desktops, servers, etc.).

What does outsourced IT have to do with a large firm hosting QuickBooks?  Well, when it comes to figuring out how to approach the problem, we should consider all the parts and IT management is certainly a big part of what hosting offers to a business, and what the hosting solution would be providing to your clients.  In so many cases, I see the professional firm approach the hosting service only in terms of direct costs – cost to subscribe the user, cost of software, etc.  The firm is trying to justify in their own minds paying the cost of the hosting service so that the client will come on board… and then the firm would earn their profits by billing for the work.  The unfortunate result in this model is that the client doesn’t really see the direct cost of, or value of, the hosting solution, and views it as simply a means of working with the accounting professional and making his life easier.

The alternative approach, which is the approach that allows the accounting professional to keep an arms length relationship with the hosting service and, therefore, the cost of the service, is for the client to be the subscriber and pay their own bill for hosting.  When the client gets their service directly from the provider, then they may be better positioned to explore and benefit from the other services the provider can offer – including hosting for other critical business applications.  This is often where a QuickBooks-only or self-host service begins to fail the subscriber,  by not being able to support other applications or processes critical to the business.  And, if the service doesn’t work for the client business, they won’t use it.  If you try to make a client use a service that doesn’t work for them, then you’ll likely lose the client.

I believe it’s important for the client to know that the technology model supports doing business in a more efficient and effective manner, and that the technology and their accounting are not the same thing. The accounting firm does important work for the business, and the hosting solution helps them do it better.  Certainly, firms see a lot of improvements in their internal efficiency, as well as improvements in client service, when they apply the correct technology to solve certain business problems.  The client will see that, as well, if you let them.

Running QuickBooks in the Cloud: Get Information from those who know

Authorized QuickBooks Host Delivers from US and Canada

InsynQ expands authorized hosting service to Canada; delivers cloud based solutions for businesses in Canada with new datacenter.

It seems that the Canadian market is quite cautious about using cloud computing services, with fears of poor security and the legality of storing personal information on servers “somewhere out there”.  For many Canadian and other non-US-based businesses, the Patriot Act has almost become synonymous for “we can’t use the cloud”, and represents a large barrier to using US-based cloud service providers.   Even though Canada has its own Anti-Terrorism Act, enacted after Sept 11, 2001, many Canadian-based businesses still see the US legislation as the primary reason for not working with providers located in the US.   Read more …

Tips for Selecting a QuickBooks Hosting Provider for Your Business

Tips for Selecting a QuickBooks Hosting Provider for Your Business

Hosted and managed application services are not really new technology – they are very similar to the service bureau computing models of years past, where green-screen dumb terminals were connected via telephone lines to large host systems located “somewhere else”.  Today, remote desktop technologies and high-speed Internet connectivity are combined to allow hosted services to deliver the performance and functionality, and nearly as much flexibility, as localized computing.

With Intuit’s announcement of an authorized QuickBooks Hosting program early in 2010 came increasing levels of market awareness of the  potential benefits of a centralized, hosted QuickBooks model.  While some providers had been offering  hosted QuickBooks software for years, the program created by Intuit has encouraged others to join into the model.  Unfortunately, some wanting to join the model have proven to be providers with little or no experience in delivering managed application services.  Others, who may have experience in hosting QuickBooks, saw barriers to the program and decided not to participate.  This puts their clients as risk by using a solution which is unsupported by the software license or developer.

How does a business select a hosting service provider for their critical business financial applications and data when there are so many companies saying they can do this?  Here are a few basic criteria that should be met by any provider, and then it comes down to the details – and we all know that’s where the “gotchas” are.

Following is some general guidance we can provide on ASP (application service provider) or hosting provider selection.  This list is not exhaustive by any means, and there may be other important aspects of the delivery that your specific business or unique situation may need to address.

1. Is the hosting provider authorized by Intuit as a commercial host for QuickBooks?

If you’re going to use QuickBooks software in a hosted environment, you should make sure your provider is authorized by Intuit to deliver the service.  Opinions vary on this subject, but the facts are the facts:

Intuit requires that commercial hosts certify with the MSPA (Managed Service Provider Alliance) prior to engaging with Intuit.  This accreditation validates certain aspects of the provider delivery, so at least there is a basic assurance that the provider has the necessary elements to provide a hosted application solution.  Intuit then takes it further by requiring that the host agree to meet certain basic requirements in terms of infrastructure redundancy and data management.

Further, the ability to assure customers of the valid use of their software licensing, and to not invalidate their ability to get support for that software, is a very legitimate basis for requiring Intuit authorization.

2. How does the service provider package and charge for services?  Ask what the basic subscription covers, and what other things might you be charged for with that service (setup fees, annual software upgrades or updates, etc).  Is the service shared/public cloud or private?

Some providers offer only shared (public cloud) services, where all servers have the same software on them, and subscribers are balanced among these servers.  When this is the case, it may be difficult or impossible to add certain applications to the hosting service.   Further, it generally means that, when software updates are introduced, those updates span to all servers in the series – for good or bad.   The biggest benefit of this type of delivery is increased fault-tolerance, because if one server goes down, you can generally connect to a different one and continue working with a minimum of disruption.  The drawbacks are generally lack of flexibility in adding applications, integrations, and ad-hoc services.

While most providers offer some level of shared service, they may also offer custom  (private cloud) services where the business can elect to have a variety of software applications hosted and managed by the provider.  The custom delivery model requires much more from the service provider in terms of experience and expertise with software installations and management, and capacity planning.  The concept of getting your own “virtual server” may seem compelling, because the service provider sells the benefits of having almost any applications you want.  The downside is that many providers do not provide the consulting and planning that should accompany such a system, and allow the client to get into trouble with incompatible applications or overburdening the system with too many applications or too much data.

If the provider offers customized service, then they likely providehosting for more than a single application.  Again, experience is critical when working with a provider who will deliver multiple applications or potentially complex integrations.  You want to be sure your provider has demonstrated competency in working with a variety of solutions as well as software providers.

3. What are your options for adding applications or services later?  Can you have other applications hosted besides QuickBooks?

4. Is the technology used to host QuickBooks industry standard, or is it based on something proprietary or unique?  What is the underlying technology used by the provider in their QuickBooks hosting service?   Recognizing that one of the major points of outsourcing the IT service is to not have to concern yourself with the intimate details of the technology, it is not necessarily wise to completely divorce yourself from the issue because it may matter greatly in terms of the ability to expand or support your implementation.

While the platform technology may not seem like it makes a difference now (it’s the provider’s responsibility, not yours, right?), it can make a huge difference later.  When it comes to dealing with a variety of applications, implementing that software in an environment that it can be supported in is very important. If the technology or delivery environment is proprietary, how do you know that the software will run properly – now and in the future, and can you be sure of getting a reasonable level of support for your software in that environment? Proven, industry standard technologies are always your best bet to ensure compatibility with current and future products, and to enable your software provider to support your solution. This may, over time, prove to be one of the more critical aspects of selecting a provider, particularly if you plan to use more than a single software product.

5. What is the method of service delivery?  First, what is the technology used – Remote Desktop or RDP, Citrix, Quest EOP, Thinworx, Ericom… there are a lot of choices out there.  Different technologies offer different features, and you should explore this area to ensure that the delivery and functionality meets your needs and those of your users.  Also ask if the provider utilizes a secure portal for website login, and if it can be co-branded or private label branded.  Other questions may include whether or not the delivery supports the use of multiple monitors; whether the application presented as a full remote desktop service orlaunched from an icon directly on the user desktop.  Can you access the file system directly, and can you upload and download files whenever you want to?  How does printing work?   All of these questions relate to the presentation of the application (QuickBooks or others), and can impact working habits and user behavior.

6. What are your options for customer service and technical support?  Technical support and support services provided with QuickBooks hosting is another important area to explore, especially if you intend to promote the hosting solution to clients.  If the quality of the support included with the service isn’t sufficient, then not only will the value and usability of the service be diminished, but so could your reputation and the trust of the client you brought on.  Recognize also that the service provider should not be directly responsible for your local PC, network, browser or security, printers, or other elements outside of their control.  This may also extend to data file corruption or data issues caused by the application.  While the service provider is not responsible for these areas, it’s nice to know whether or not they will at least help you with them.

7. What are the billing and payment terms – is there a minimum contract duration or is it month-to-month service?  Are there volume commitments, or volume discounts?  Some providers offer different terms for shared versus customized service, and term or user commitment levels may vary with service level and provider.  Generally, the hosting service is provided as a monthly subscription service.  Some service providers require prepayment of term agreements.  When you pay ahead for the service, it’s very difficult to end the engagement if it doesn’t work out for you, and you could end up being locked in to a service that is not what you need.  If you have customized service, then it makes sense for the provider to require the commitment because both parties are investing in the delivery: you’re investing in the term agreement  and the provider invests in the infrastructure and engineering to create your customized service.

8. What are your options for terminating service, and what happens to your data when you do terminate service?  Every provider should recognize your ability and right to terminate service, but under what conditions and terms?  Make sure you know the rules, or you may be left out of touch with your solution, your applications or your data.  Prior to terminating service, make sure you have all of your data backed up to local computers or devices.  If the ability to backup your data locally, or obtain copies of your data at any time, isn’t a feature of the service, then you should be concerned that you may not be able to get your things back when the time comes.  Upon termination of service your service provider has every right to make you pay any fees due for hosting prior to releasing your current data.  They aren’t keeping you from your information and are providing you a remedy (pay your bill).  The service provider is simply enforcing your requirement to pay for the services rendered before you can take your ball and go home.