I recently read an article in Directions on Microsoft by Matt Rosoff, that Intuit plans to push Azure and Microsoft Online to its development partners and to customers of its QuickBooks small business accounting software.
The Microsoft deal involves the Intuit Partner Platform (IPP), which provides a way for third-party developers to build and host SaaS applications that might appeal to QuickBooks customers.
The IPP provides several services for developers, including data-sharing with customers' on-premises QuickBooks installations (Software + Services), as well as an Apps Exchange called AppCenter through which Intuit customers can buy or subscribe to services from Intuit and its IPP partners.
Ultimately, this deal could help Azure developers reach Intuit's small and midsize business customers and in turn could increase the popularity of the Azure platform vs. competitors like Amazon, Google and Salesforce.com. It could also help Intuit build support for the IPP among Microsoft's large developer base.
Needless to say, this is a clever approach and a great way of Creating Competitive Advantage. All too often, companies go into a business relationship without harnessing each others core assets and it generally fizzles after the initial splash.
As a Growth Venture Capital fund, we are always looking for ways for our Growth Stage portfolio companies to leverage and scale. Building an AppCenter is a great way to do this while harnessing the power of a developer eco-system and delivering high-value solutions to customers. It also helps to create the "blow-fish" effect and competitive positioning with the big guys.
BTW, if you are interested in learning more about Microsoft and its strategies, the best periodical I have found is Directions on Microsoft. Rob Horwitz and team at Redmond Communications go way back with Microsoft and are entrenched in the halls of Redmond.
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