UK accounting software developer Sage Group Plc, has responded to the squeeze from big enterprise resource planning names moving down the value chain for fresh custom, by offering an upgrade service to its customers that it hopes will consolidate its mid-market position.
This will involve adding logistics and distribution software derived from the acquisition of Tetra Plc in March (CI No 3,609) to the companyÆs core strength in financials. Within two years, Sage expects to migrate more than 1000 of its 2,500 accounting software customers to the TetraÆs CS and CS/3 systems.
The Tetra products boast features not covered by SageÆs original offering, such as project management software, customer relationship management software that prompts telesales operatives on customer data, remote access to applications across the web and the ability to store data on MicrosoftÆs SQL Small Business Server.
Newcastle-based Sage is sweetening the upgrade deal for its customers by reducing prices for the CS and CS/3 systems by as much as 50% and offering three monthsÆ free maintenance. With prices for CS between 10,000 pounds and 20,000 pounds ($16,200 to $32,400) and those for CS/3 going as high as 100,000 pounds ($162,000), the company expects to generate more than 4,000 pounds ($6,400) per customer, which would add a healthy 4m pounds ($6.4m) to the top line.
Sage is apparently unconcerned over the movement of players like SAP into its space, saying that it has hardly run into the Walldorf firm. Sage defeated SAP recently, winning a 48-user contract for the Forensic Science Service, the UK government mortuary organization. But this is an unusual meeting between the two firms. If we compete, SAP are in the wrong market, says VP for Europe and the USA Ian Knight. In its eight to 64-user æsweet spotÆ Sage is far more nimble than SAP, with implementation times starting from four weeks, a far cry from SAPÆs six month, says Knight.
