23 January 2006

Stiffer Competition on the Low End

Competition on the low end of accounting software is heating up. Microsoft's new boxed small business software is being discounted to better take on Quickbooks and now Sage has entered the fray. This is kind of strange since Sage's Peachtree product is a verrrrry distant #2 to Quickbooks.

Sage has a huge line of accounting products purchased over the years but after replacing a number of them with Great Plains, it became apparent that Sage has next to no upgrade strategy among the products. Every growth step for their existing base becomes a point of attack by a competitor, rather than a smooth upgrade to the next product.

Microsofts recent entry into this space is Great Plains based and looks alot like GP with alot more bells and whistles for inexperienced accountants.