Intuit, Microsoft, Best Lead Market For SMB Accounting Apps

In the segment of the market catering to businesses with two to 19 employees, Intuit controls 68.3 percent of the market. For businesses with 20 to 99 employees, Intuit and Best Software each hold 29 percent market share. In businesses with 100 to 499 employees, Microsoft holds 21 percent of the market share, and the firm retains a slim lead over Best Software in companies with between 500 and 1,000 employees.

"Small businesses need software that is simple to install and easy to use without straining their already tight or perhaps non-existent IT resources," said Sanjeev Aggarwal, a senor analyst with the Yankee Group, in a statement. "For those companies, a choice between on-demand or on-premises installed applications is good." Midsized businesses with multi-site locations and a mobile workforce will find the best value in on-demand applications that are delivered virtually, said Aggarwal.

To the end of offering ease of use and cost-effectiveness, the Yankee Group recommends that vendors redesign their products to encompasses a service-oriented architecture (SOA) and to give customers a choice of on-demand or on-premises delivery models. Currently standing in the way of SMB market expansion are the lack of clear migration paths and a scarcity of applications suited for the demands of anytime, anywhere access for the mobile workforce.