A couple years ago I predicted Microsoft would buy accounting software publisher Great Plains, and this would begin a bloodbath for publishers of accounting software. Microsoft would soon "integrate" Great Plains into features of it's other products, progressively locking out competitors. In December 2000, Microsoft made that buy (my article).
I also predicted that soon after the Great Plains buy, they would announce a low end accounting package to fill the gap between Great Plains and Microsoft money. In the third week of July 2001, that announcement was made. Currently called "Blue", it will be named Small Business Manager when released.
Microsoft Great Plains also announced all the Great Plains software will be completely rewritten in Microsoft's C# (C Sharp) language so it can be tightly integrated into Microsoft's .NET initiative. Microsoft Money will soon join the .NET team as well.
Intuit will be a priority target. Why? A few years ago Microsoft agreed to buy Intuit. They had a plan to "collect a vig" (a bookies cut of a bet) on every electronic financial transaction made. They wanted Intuit because of it's extensive electronic payment agreements with banks and other financial institutions.
The Department of Justice protested, and Microsoft went into court loaded for bear. They swarmed the court with lawyers and subpoenaed the business plans of their competitors - then disaster struck - they failed to file a response to a court inquiry on time, leaving them at the mercy of a court that looked real short on mercy. The deal had to be abandoned.
Now .NET, an even more aggressive program, has replaced the "vig" plan. Intuit's financial agreements now stand in Microsoft's way.
What it all means to your business:
What's to stop this from happening? Intuit can't do much, they're totally dependent on Microsoft. All the other Windows accounting publishers are way too small to resist Microsoft in a meaningful way.
It looks like, in the end, Intuit's survival depends on the Department of Justice and anti-trust action brought by other parties
- Andrew Grygus
- Automation Access
Velocity Networks: Network Consulting Service - Internet Service Provider - Web Page Design and Hosting
All trademarks and trade names are recognized as property of their owners