In ancient times, before the existence of the internet, Sage brought forth their numbered ERP solutions to become the third-largest ERP vendor in the world. But while Sage 90, Sage 200, Sage 300 and the rest can be adapted to the cloud, they weren’t built for it like Sage Intacct and other modern ERP systems.
In this article, we review the options for existing Sage customers and provide a prognosis for where we feel Sage is headed in the future.
Dating back to its founding in 1981, Sage has focused on small to midsize companies, providing users with accounting and financial management software tools and packages. Sage has continually developed with the ever-changing demands of ERP — such was the case in 2017 when it acquired Intacct, a leading provider of cloud financial management solutions. Sage has multiple product lines and offers a plethora of application versions to its clients, including Sage 300, which alone has 19 variations.
End-of-life has arrived for some of these products, such as Sage 100 2017 5.4, which was retired on September 30, 2020. Because they are no longer supported, this means that tax updates, regulatory changes, and security packages are no longer the responsibility of Sage — rather, it is the responsibility of the user to make adjustments or adapt.
While avoiding the challenges of maintaining outdated software systems is possible with Sage’s system updates, the corporate strategy appears to be expediting user migration to modern platforms such as Intacct, X3, and the like.
This transition would result in a substantial number of clients moving onto cloud ERP software, with a commensurate revenue increase for Sage. The question for existing customers is whether they would be better served by evaluating all available options in a crowded marketplace for midsize ERP solutions.
To its benefit, Sage can rely on a certain degree of loyalty from a formidable customer base, which could be described as one of Sage’s greatest assets. Once an organization has a relationship with a provider and is familiar with that provider’s systems, it reduces the likelihood that the customer would terminate that relationship, especially when they are content with the support being provided.
Establishing recurring revenue is the goal of all cloud service providers — which is also a primary reason why companies are hesitant to make the move to cloud-based services. In the case of Sage, they have made a move to sweeten the deal by offering loyalty discounts to current customers on legacy systems.
While on-prem data ensures a high level of security for users who fear that their private data could be lost to the cloud or breached by someone outside of their organization, cloud security has improved significantly. As end-of-life approaches for several Sage products, companies are coming to the realization that it is expensive to maintain multiple software versions, hence they make the decision to fully migrate to the cloud.
This reality is two-sided. Software providers such as Sage are forced to examine the needs of their own company, realizing that it is expensive to employ experts on outdated software. Sage’s question to themselves is: "Does it make economic sense to provide support to a given version of our software?" If the answer is yes, then support will be maintained, but if the answer is no, Sage will determine an end date for version's support.
Depending on how old your legacy software is, migrating to Sage Intacct could require an entirely new ERP implementation project. Migrating to Sage Intacct is not our definitive recommendation and we do suggest that businesses evaluate all available options on the market; however, we have seen this as the viable solution for those needing to move on from Sage's legacy products. If Sage Intacct is right for your organization, here are some tips to help evaluate what is needed in order to smoothly make the transition.
Without knowing this, you will not know where or how to begin the process of upgrading your system. This is especially important when an organization’s products are nearing end-of-life.
Sage Intacct supports many different industries, but there are some that it is not well-suited for. Make sure you know if it supports your industry. Some of Sage’s strongest industries include nonprofit organizations, accounting CPA firms, religious institutions, and franchise businesses.
But only if you trust them. Some implementation partners will make promises that they simply cannot keep. Rather than advising you to upgrade to new software when it is the best choice, they may assure you that they can provide the necessary support to maintain the outdated software. A good implementation partner will tell you when to stay and when to leave.
Sage will provide the most accurate information about their products. They have an excellent support team, so give them a call and ask lots of questions.
It is your responsibility to do your due diligence for your company. Moving off a legacy platform is an opportunity to evaluate other vendors which may be better equipped to meet your organization’s unique requirements. You need to know exactly what you want, need, and expect from your cloud software provider, whether on-premises or in the cloud — and that means being open-minded to examining your options in the ERP marketplace.
Even if you decide to continue using your current system, it is never too early to think about the future. Your company is dependent on its software systems and providers, so make sure you have the absolute best systems in place for your company.
Looking forward, the two Sage products which appear to have the most promising future are Sage Intacct and Sage X3. While Sage Intacct is a completely cloud-based, international best-of-breed accounting software, Sage X3 is a management system that offers planning, scheduling, and production control services for complex manufacturing businesses.
These go-forward ERP solutions are arguably the most promising in Sage’s product line due to their support systems, road maps, and research and development. With such a massive customer base, Sage has the advantage of maintaining lasting relationships with current users by fortifying its strengths, most notably its tried-and-true customer support.
Our independent ERP consultants can help you evaluate your unique needs and help you make the right decisions for your organization. Contact us today for an individualized ERP consultation.