For years, Microsoft Corp.'s (msft) Money product has been battling Intuit Inc.'s (intu) Quicken, but reviewers, customers and even Microsoft itself (Microsoft tried to buy Intuit) saw Money as an inferior product. And that helped Quicken hold on to a market share estimated at 70 percent or better.
But since last fall, reviewers have said that the latest version of Money is the equal to -- maybe even better than -- Quicken. That became readily apparent two weeks ago when Walter Mossberg, an influential technology columnist for the Wall Street Journal, wrote that not only did he think Microsoft was putting out a better product, but that he personally decided to switch over after using Quicken for years.
"I have had the gradual feeling for a couple of years that Intuit's had more and more problems in Quicken ... and were less responsive to dealing with them," Mossberg said in an interview.
He wasn't the only one to put Microsoft on top. Reviews at ZDNet's Computer Shopper, CNet.com and PC World all lauded Microsoft's product, with several saying it had bested Quicken in some areas. "While there's nothing significant that you can do in Money that can't be done in Quicken, Microsoft Money 2000 Deluxe is now the more elegant of the two," wrote Compuer Shopper reviewer Wayne Kawamoto. "It's easier to use, offers stronger Web integration, and does a better job of configuring itself for users."
But did readers take notice? Apparently not.
A quick scan of market share figures from PC Data shows no noticeable change in Quicken's dominance. Since October 1999, after both companies released the latest versions of their software, Intuit's market share actually grew, despite Microsoft's good press.
"Intuit is very entrenched in the market," said Ann Stephens, CEO of PC Data. "Microsoft did try to buy them, and were buying them at a premium because it was obviously a very tough market to break into."
Intuit smartly integrated Quicken into other financial services areas, working with billers and banks, for example, the analyst said. "The fact is that (Intuit has) a very loyal customer base, some of which has the feeling of almost a cult group." So it's unlikely Microsoft will overtake Intuit, at least not soon.
"Do I expect next year for MS Money to overtake Quicken? Heck no," Stephens said. "Ten years down the pike, it's possible. Anybody could screw up. But it's Intuit's (market) to lose."
Intuit officials say they are working hard to avoid losing momentum. While their huge lead is something most companies would envy, they still see Microsoft as a threat.
"We agree with (former Intel Corp. CEO) Andy Grove that only the paranoid survive. Competing with Microsoft is always a daunting task," said Steve Grey, general manager for Quicken.
Microsoft executives said the reviews were heartening, although they're a bit frustrated at the slow pace of change.
"The center of gravity is definitely moving," said Robert Cape, product unit manager for MS Money.
He said the company is working on developments for the next version of the software that will focus on the concept of "total financial health."
"It's about taking a really holistic view of how a user manages finances from soup to nuts," he said.
Intuit, meanwhile, is looking at developing its basic stand-alone Quicken into the centerpiece of an integrated platform that combines multiple products on the desktop and on the Internet.
"We've been redefining the category to have Quicken, Quicken.com and TurboTax work together seamlessly. Taking some key areas of people's finances -- banking, bills, taxes, insurance, loans and financing -- and make that one seamless experience," Grey said. "There's years of innovation to go and making that whole system very seamless."
