5 Reasons QuickBooks Enterprise is now Subscription Only
QuickBooks will be debuting a subscription model on it’s popular Accounting, Payroll and Inventory Service (QuickBooks Enterprise). QBES is a fast-growing, important part of the product line-up at Intuit. Intuit plans to continue with, “Aggressive investment of the product,” according to a partner webinar held October 1st, 2014.
How this news affects you:
Built off the success they are having in Canada with subscriptions, Intuit is making a change to the Enterprise Solutions business model to eventually become a subscription-based only service.
If you are an existing customer:
Intuit will be gradually phasing out non-subscription QBES accounts, but does not have a concrete timeline to the process. What we do know comes from an Intuit-hosted webinar on October 1st, 2014, detailing the new Enterprise Solutions subscription model. The graphics below are screenshots from Intuit’s QBES webinar. Again, they do not have a concrete timeline to phase out existing non-subscription accounts. They did, however, drop a hint which mentioned that down the road QuickBooks Enterprise Solutions may become a fully SaaS-based product (Software as a service).
Why QuickBooks Enterprise Will Stay Competitive as a Subscription Only Service
1. QuickBooks will Stay Competitive:
Intuit positions QuickBooks Enterprise as an affordable, ERP-caliber accounting option. The graph above is based on Intuit’s 5-seat (user) intervals. Intuit positions QBES above Sage from a functionality perspective. You can see from the graph that over the course of three years, QuickBooks pricing will remain low, thus staying competitive.
2. Lineup for New QuickBooks Enterprise Subscriptions:
QuickBooks Full Service Plan (FSP) is an extremely popular add-on, and in the new model, Intuit will actually make the service more affordable to the end user. In addition, payroll and additional add-ons (such as human resources) will be bundled into a simplified package to avoid add-on confusion.
3. You’ll Save Money:
Intuit debuted the savings will be incurred by moving to a subscription only model. In a nutshell, the more add-ons the user purchases, the more the user will save. Most customers utilize the QBES Full Service Plan, so most customers will save a good chunk of change.
4. Current (Expiring) Pricing vs. New Subscription Only:
The above pricing model only immediately effects new users of QuickBooks. Again using the five-seat model, QuickBooks Enterprise will now be bundling in many popular add-ons, specifically QBES Advanced Inventory, Pricing and Payroll features.
5. New QBES User Pricing:
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