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Intuit: Pain and pleasure in the cloud

By | November 22, 2011, 1:25pm PST

Summary: Migrating high-volume software products to cloud-based delivery can be a difficult challenge. Here’s insight into Intuit’s story.

Financial software company, Intuit, is a significant provider of services to the small business market. With total revenues around $4 billion, the company offers products such as check processing, payroll services, personal and professional tax preparation tools, and accounting software. It’s a big business that automates important financial functions for small and mid-sized organizations.

Intuit’s customers rely on the company to provide core, mission-critical financial services. For this reason, Intuit is as much an enterprise technology company as Oracle or SAP. In recent years, the company migrated its products to the cloud, emphasizing service delivery over the Internet.

Migration challenges. For many enterprise vendors, migrating products from on-premise to the cloud involves a challenging mix of changes to technology, process, and business model. In Intuit’s case, with a broad product line that spans large organizations down to millions of consumers, many of these changes are particularly complex.

I spoke with Tayloe Stansbury, Intuit’s Senior Vice President and Chief Technology Officer, to get a better sense of the company’s efforts to migrate its products to the cloud. Stansbury explained that Intuit has invested over $300 million during the last two years to consolidate data centers, upgrade hardware, and refresh its software applications. Inuit has used much of this investment to create a robust architecture and software as a service (SaaS) technology platform.

In addition to technology investment, however, Intuit has also focused on personnel and process. To minimize human error the company instituted a peer review board, consisting of architects and others, which must approve all software and hardware changes. In addition, the company evaluated staff, including both senior management and technical personnel, to “ensure that all groups possess sufficient experience with high-availability SaaS computing.”

Despite its massive upgrade and modernization program over the last 18 months, Intuit nonetheless suffered a series of outages that provoked the wrath of customers and served as a “wake-up call” inside the company, to use Stansbury’s term. These outages interfered with customers’ business operations and therefore harmed Intuit’s reputation.

When I discussed these outages with Intuit, the company emphasized that customer satisfaction is “in our DNA.” That said, the outages serve as an example of the difficulty associated with migrating a traditional software business to the Web.

Outages and downtime »

Topics

Michael Krigsman is a recognized authority on the causes and prevention of IT failures.

Disclosure

Michael Krigsman

Michael Krigsman writes and speaks about technology in a manner that most observers consider to be fair and balanced. Michael believes that writing about IT failures, which often have complex causes, creates a unique obligation to be reasonable and accurate in both reporting and analysis.

Michael maintains active personal and professional relationships with enterprise technology buyers, vendors, analyst firms (or individual analysts), consultants, and system integrators. As CEO of Asuret, Michael sells and delivers paid services to members of these same groups.

Vendors regularly reimburse Michael's out-of-pocket travel expenses to attend industry conferences and events. Conference organizers frequently waive entry fees when Michael attends industry events. Michael often speaks at industry conferences and events.

He is a member of the Enterprise Irregulars, a loose association of consultants, investors, industry representatives, analysts, and users of enterprise software.

For daily updates on Michael's activities, follow him on Twitter.

Biography

Michael Krigsman

Michael Krigsman is CEO of Asuret, Inc., a consulting company dedicated to reducing technology implementation failures. Asuret's suite of software tools improve the success rate of enterprise software deployments by quantifying and measuring governance issues that cause most project failures. Michael led the research effort underlying Asuret's model of collective intelligence and its practical application to reducing IT failures in consulting environments. He is a recognized authority on the causes and prevention of IT failures and is frequently quoted in the press on IT project and related CIO issues. He is considered an enterprise software industry "influencer" and provides advice to technology buyers, vendors, and services firms.

Previously, Michael served as CEO of Cambridge Publications, which develops tools and processes for software implementations and related business practice automation projects. Michael has been involved with hundreds of software development projects, for companies ranging from small startups to Fortune 500 organizations. Michael graduated with an M.B.A. from Boston University and a B.A. from Bard College. He is a Board member of the America's Cup Hall of Fame and the Herreshoff Marine Museum in Bristol, RI.

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