# Why A Quiet Revolution In The Cloud Is Worth Billions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-26 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Death of Desktop Accounting Software: Why SMEs Must Meta Description: Discover how iplicit, led by CEO Lyndon Stickley, is shaking up the industry and offering a more efficient, cost-effective solution for businesses. URL: https://financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/theres-a-fine-1736815539157-compressed.jpg) **Disruption And The Impending Demise Of Desktop Accounting Software** _By_ **_Lyndon Stickley,_** _Chief Executive Officer of_ [_iplicit_](https://www.iplicit.com/) _._ _Mr. Stickley has a long and highly successful track record of launching, growing and selling innovative [technology companies across a wide range of sectors](https://www.financedigest.com/why-its-time-to-centralise-public-sector-technology.html "Why it’s time to centralise public sector technology"). The past 30 years have seen his involvement in building six other businesses that have each been acquired, the largest deal being over £100 million. He has also had significant [experience of scaling up a technology](https://www.financedigest.com/how-is-modern-technology-shaping-our-in-store-experience.html "How Is Modern Technology Shaping Our In Store Experience?") business in America, having lived there for three years while at the helm of one of his investments._ A quiet revolution is underway in the [world of cloud](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds") accounting software. Or rather, it’s more of a goldrush. And not everything about it is quite so hushed – the move away from desktop software is causing consternation among some small firms. As it currently stands, the [cloud accounting software market is dominated by entry-level offerings such as Xero and QuickBooks at one end and corporate sector](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") platforms such as NetSuite, Dynamics and Intacct at the other. But the mid-market is an underserved void that offers [lucrative opportunities](https://www.financedigest.com/grain-and-cereal-crop-market-novel-technological-solutions-will-create-lucrative-growth-opportunities.html "Grain And Cereal Crop Market : Novel Technological Solutions Will Create Lucrative Growth Opportunities"). Award-winning accounting software developer iplicit [forecasts £100 million in annual recurring revenues](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit"), based on just a 10% market share, over the next decade in the UK alone. “That’s a £1 billion (valuation) business in the UK – and a multi-billion pound [opportunity when you factor in North](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") America and the rest of the world,” said iplicit CEO Lyndon Stickley. Launched in January 2019, iplicit now has [customers in 52 countries and more than 7,500 users on its platform](https://www.financedigest.com/a-ccm-platform-is-crucial-to-your-customer-communication-plans-heres-why.html "A CCM platform is crucial to your customer communication plans: here’s why") on a daily basis. It is on track to [onboard 60,000 users](https://www.financedigest.com/getting-started-with-user-onboarding-tools-in-2022.html "Getting Started with User Onboarding Tools in 2022") by 2025. [Growth at iplicit is being driven by a team that includes CFO](https://www.financedigest.com/three-explanations-for-the-growth-of-the-fractional-cfo.html "Three Explanations for the Growth of the Fractional CFO") Rob Steele, who co-founded Bournemouth-based Exchequer Software. He secured Exchequer’s position in the UK [market and was instrumental in its sale](https://www.financedigest.com/mass-notification-systems-market-sales-to-increase-by-18-5-cagr-through-2031.html "Mass Notification Systems Market Sales to Increase by 18.5% CAGR through 2031") to IRIS in March 2005. London-based iplicit believes that [migration from desktop to cloud](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions") is becoming inevitable for most SMEs. Not least because they are being forced to do so by their current providers. Switching customers from desktop to [cloud-based software](https://www.financedigest.com/how-much-does-cloud-based-financial-software-cost.html "How Much Does Cloud-based Financial Software Cost?") enables providers to: - [reduce development costs](https://www.financedigest.com/home-start-lincolnshire-implements-flexible-unified-communications-service-to-reduce-costs.html "HOME-START LINCOLNSHIRE IMPLEMENTS FLEXIBLE UNIFIED COMMUNICATIONS SERVICE TO REDUCE COSTS") – they will no longer have two sets of code (desktop and cloud) to maintain - enjoy recurring revenue – a predictable, steady stream of income that delights shareholders. [Support for Sage 50 will end](https://www.financedigest.com/european-stocks-find-support-at-end-of-volatile-week.html "European stocks find support at end of volatile week") on September 30 2022. Support for various QuickBooks 2019 desktop [services ended](https://www.financedigest.com/light-at-end-of-tunnel-for-czech-services-as-government-drops-covid-pass.html "Light at end of tunnel for Czech services as government drops COVID pass") on June 1 2022. Mr Stickley said: “The ramifications of desktop software reaching end of life are widespread and deep for hundreds of thousands of organisations [around the globe](https://www.financedigest.com/pain-of-breaking-inflation-will-reverberate-around-the-globe.html "Pain of breaking inflation will reverberate around the globe"). “Sage has almost a [million desktop customers](https://www.financedigest.com/crypto-broker-genesis-owes-geminis-customers-900-million-ft.html "Crypto broker Genesis owes Gemini’s customers 0 million – FT") alone, not to mention many of the other historic incumbents who dominated on-premise accounting software in the ‘90s and noughties.” Some former Sage 50 [customers are unhappy after being told they will now have to pay for cloud-based accounting](https://www.financedigest.com/theres-a-fine-line-between-relinquishing-control-and-accountability-financial-institutions-must-balance-both-to-successfully-cloudify-operations-and-meet-customer-expectations.html "There’s a fine line between relinquishing control and accountability. Financial institutions must balance both to successfully cloudify operations and meet customer expectations") software (a recurring monthly cost) – just months after investing in the desktop version (a one-off capital cost). Some QuickBooks [customers report that the online version can’t handle](https://www.financedigest.com/listen-care-share-ofwats-latest-report-on-the-water-industrys-handling-of-customers-during-the-pandemic.html "Listen, Care, Share: Ofwat’s latest report on the water industry’s handling of customers during the pandemic") the same levels of stock as the desktop version. Mr Stickley said: “This is clearly a significant issue from a continuity of business perspective, if the existing versions cease to evolve or be supported.” Most QuickBooks desktop and Sage 50 users will be able to transition to either QuickBooks cloud or Xero. But hundreds of thousands of organisations will have financial complexities – such as multi-legal entities, consolidated reporting and approval workflow requirements – that are beyond the entry-level capabilities of these basic offerings. Just to be clear, small firms don’t have a problem with [cloud technology](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry"). Quite the contrary – sole traders and smaller SMEs have been keen adopters. In particular, Xero and QuickBooks have led the [way in educating millions of small organisations around](https://www.financedigest.com/5-time-efficient-ways-to-travel-around-the-philippines.html "5 Time-Efficient Ways to Travel Around the Philippines") the globe about the benefits of the cloud. Ordinarily, any new technology is taken up first by the [major corporations](https://www.financedigest.com/verasity-completes-major-corporate-rebrand-and-releases-new-website.html "Verasity Completes Major Corporate Rebrand and Releases New Website") before cascading down through the supply chains. NetSuite first appeared around 20 years ago, offering a ‘nimble’ cloud alternative to the enterprise incumbents. In theory, the mid-market should have been [next to follow](https://www.financedigest.com/france-next-on-the-map-for-adtech-vendor-adnami-following-the-signing-of-new-partnerships-with-ad4good-and-tf1.html "France next on the map for adtech vendor Adnami following the signing of new partnerships with Ad4Good and TF1") suit and adopt the new technology. But instead, the process of evolution seemed to pause and stagnate: on-premise vendors protected their desktop customer base, [offering very little](https://www.financedigest.com/big-fall-in-euro-zone-inflation-offers-little-help-for-ecb.html "Big fall in euro zone inflation offers little help for ECB") in terms of a migration path to the cloud. Instead, enter Xero around a decade ago – a proverbial kick up the backside for dominant incumbent QuickBooks. Roll the clock forward 10 years and we have the two primary providers of entry-level accounting software – providing true cloud [options for the sole trader](https://www.financedigest.com/cryptoverse-bitcoin-traders-like-their-options.html "Cryptoverse: Bitcoin traders like their options") up to 30-strong organisations with a meaningful payroll. But what about organisations with between 30 and 300 employees? They are serious enough to require more than entry-level software. They need affordable ERP, without 75-150 days of migration, configuration and training. The FDs at these 30-300 organisations can’t face the accountancy software equivalent of open-heart surgery, even if they [know they need](https://www.financedigest.com/g20-summit-what-you-need-to-know-now.html "G20 Summit: What you need to know now") it – instead they need a keyhole alternative. Organisations of this size don’t have the luxury of [project teams they can allocate for the next](https://www.financedigest.com/polycaprolactone-market-is-projected-to-expand-at-an-impressive-cagr-of-10-over-the-next-decade-to-be-valued-2-5x-its-current-side-by-2030.html "Polycaprolactone Market Is Projected To Expand At An Impressive CAGR Of 10% Over The Next Decade, To Be Valued 2.5X Its Current Side By 2030") 12 months. They also face another challenge…are they able to specify the right type of cloud technology? There is a significant difference between true [cloud software and the fake cloud perpetuated by some of the old legacy providers](https://www.financedigest.com/can-companies-minimise-their-dependency-on-cloud-service-providers.html "Can companies minimise their dependency on cloud service providers?"). Fake cloud lacks the full functionality – in some cases, embarrassingly so. This disparity was caused by the [market’s rush to create online offerings when the technology first emerged](https://www.financedigest.com/could-the-surging-build-to-rent-market-create-emerging-opportunities-for-investors.html "Could the surging build-to-rent market create emerging opportunities for investors?"). Online [access was effectively](https://www.financedigest.com/the-npwt-suction-pads-market-to-grow-on-an-effective-and-accessible-note-backed-by-innovation.html "The Npwt Suction Pads Market to grow on an effective and accessible note backed by innovation") (or rather not very effectively) bolted on to the old desktop code. This led to bloatware and compromised functionality among some legacy providers’ software – whereas newer players like iplicit have been able to start with fresh code. This is crucial because modern cloud-based accountancy software helps SMEs and nonprofits to reduce administration, [cut costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") and become more agile – helping them to seize new opportunities and retain existing customers. And as the economy tightens, that need has never been more important. The latest Q2 2022 report from Gartner [points to businesses seeing macroeconomic downturn as a greater emerging risk than ransomware attacks](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") or Russia’s invasion of Ukraine. For more information on true cloud accounting software, contact iplicit Commercial Director Paul Sparkes, +44 (0)20 7729 3260, [info@iplicit.com](mailto:info@iplicit.com), [www.iplicit.com](http://www.iplicit.com) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---