New QuickBooks Hosting Mistakes

April 4, 2010 - PRLog -- I knew Fred Lake from a QuickBooks hosting and outsourcing company. He is now an Intuit Advisory Council member. After only seeing the headline of my New QuickBooks Hosting t Mistake  post he wrote, " Why do you feel so strongly?  I looked it over and it looks pretty good."

I responded:

I am shocked that you found nothing objectionable to the New QuickBooks Hosting  Mistake. I believe there are only two reasons that most New QuickBooks hosting company executives, new QuickBooks hosting customers, and QuickBooks users are not YET as outraged as I am by this New QuickBooks Hosting Mistake. You do not know the facts and have not spent the time I spent analyzing the New QuickBooks Hosting Mistake. See
http://www.quickbooks-blog.com/2010/04/new-quickbooks-hosting-worst-.html and the referenced posts and documents.

The New QuickBooks Hosting Mistake Request for Information (RFI) will take thousands of dollars of time to properly complete. Intuit seems to want the type of data center that Internal Revenue wants before users can get an exemption from a foreign tax preparer outsourcing rule. The official estimated government cost. of the APPLICATION for such a center is $150,000. That is not the cost of the data center, but the estimated cost of required paperwork. A friend of mine says this is a low estimate.

I heard Intuit planned to license about 12 more New QuicklBooks hosting companies (total 15), while putting around a thousand out of business. There were 600,000+ Google links to QuickBooks hosting, so there may be far more hosting companies. Even if there are only a thousand hosting companies, with an average of 200 users per company, this affects 200,000+ QuickBooks hosting users. The New QuickBooks Hosting Mistake also does not allow QuickBooks hosting on internal company servers, which may more than double affected QuickBooks hosting users.

Companies selected will pay $18,000 in the first year (including $3,000 before knowing if they qualify, as they cannot call on the New QuickBooks Hosting Mistake RFI), $5,000 a year in later years, and $5/client per month. Intuit will get so much New QuickBooks Hosting company financial, operational, and security information that it can always further squeeze the New QuickBooks Hosting companies. It expressly reserves the right to make New QuickBooks Hosting information public and to compete with the New QuickBooks Hosting companies, so it can give information on some companies to others.

The costs of  New QuickBooks Hosting companies will not be competitive with the costs of New QuickBooks Hosting self-hosting Certified QuickBooks ProAdvisors and Enterprise ISPs. The cost difference between the New QuikBooks Hosting self hosts and Commercial New QuickBoks Hosting companies will let any self-host expand his practice to 10,000+ clients, as a $1 white-label generic newsletter can make you my New QuickBooks Hosting client. There also are three times as many un-certified QuickBooks ProAdvisors as Certified QuickBooks ProAdvisors, so far more will be upset than happy.

Top Intuit execs actively encouraged QuickBooks hosting growth without mentioning the shared computer prohibition in the QuickBooks Software License Agreement (SLA). Some agreed that the SLA would change for the apparent violation. Now Intuit is using the SLA to ban shared computer use for the New QuickBooks Hosting Mistake. However, all QuickBooks network file servers are technically banned shared computers. Most shared network servers also run the QuickBooks network client - server program. These shared computers are not technically distinguishable from SLA banned shared terminal server computers, which is hypocritical.

The Intuit approach means that all who provided or used QuickBooks hosting service violated copyrights. This criminal offense applies to licensed New QuickBooks Hosting Mistake  companies before licensing. If Intuit rejects an New QuickBooks Hosting Mistake applicant, the company go out of business quickly. It will otherwise face many effectively admitted criminal copyright violation and RICO Act charges. This make the Intuit execs who encouraged it criminal co-conspirators. Some may consider them guiltier than those who committed the copyright offenses. Intuit may contract with companies to legalize the New QuickBooks Hosting Mistake in the future, but federal and state criminal prosecutors would be derelict in their duty for not prosecuting prior New QuickBooks Hosting copyright violations.

My latest post shows that there is no reason for any of this. Intuit can and should monitor and bill for inappropriate QuickBooks hosting. QuickBooks users should not be able to use a copy of QuickBooks during the day and have an outsourced contractor use that same copy at night. I suspect Intuit would get more revenue by enforcing this than they would from the New QuickBooks Hosting Mistake program.

My many future posts will show:

   QuickBooks hosting companies can easily restructure, technically or legally,
   to avoid the New QuickBooks Hosting Mistake charges.

   Not allowing the very increasingly popular shared computer use, without punitive
   charges, will hurt QuickBooks users, hosting companies, powerful allies, national
   and international authorities, and Intuit.

   Intuit is betting its very survival on this issue, for far less extra revenue than it could
   and should get, when likely damages are 1,000 times as much.

   Even if I am wrong on many predictions, it is likely that copyright and anti-trust
   litigation will make the New QuickBooks Hosting Mistake data public.


  Mike Block QuickBoooks CPA  954-903-7250 24/7
       Intuit pays me to make QuickBooks better!    
http://Blocktax.com/ http://quickbooks-add-ons.com/
http://www.quickbooks-blog.com/ Twitter: MikeBlockCPA

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Mike Block CPA, BlockTax QuickBooks, is nationally known for QuickBooks insider news and tips, QuickBooks Accounting Software, Free QuickBooks, QuickBooks Errors, Speeding Up QuickBooks, QuickBooks Performance, QuickBooks Shortcuts, QuickBooks tax cuts.