We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedTechnology

Sage to double growth rate by 2015


The company hopes to increase growth from 3 percent to 6 percent over next three years

Article comments

Sage said it plans to double its growth rate from 3 percent to 6 percent over the next three years by investing in ‘high potential’ products, namely cloud and mobile.

The Newcastle-based company will be reallocating resources away from ‘low growth potential’ products, the entreprise applications company told analysts at briefing on Wednesday.

Sage CEO, Guy Berruyer, said he carried out a forensic review of the business, its market and its portfolio, something that the company had not done before, in order to enable it to make “tough calls” and put it in a position to meet its growth goals.

Sage plans to categorise its products into three groups – sunset (those with low growth potential), harvest (those with medium potential), and invest (those with high potential) – and will allocate its resources accordingly.

According to Angela Eager, research director at TechMarketView who attended the briefing, Sage has some 270 products, and while it is not actively planning to sell off or discontinue the ‘sunset’ category, she predicts that some will be “heading towards the door”.

Cloud-based SageOne, an accounting and business services tool, will aim to deliver the company's entry-level growth, applications built on Microsoft’s Azure platform, such as Sage 200, will drive SME growth, while Sage ERP X3 is positioned to push the mid-market business forward.

Eager believes that the SageOne and Azure offerings will deliver growth, but “it’s harder to see on-premise ERP X3 making a step change”.

However, she also thinks that Sage has “woken up to the potential inherent” in new technologies in the software applications market, such as cloud and mobile, which “run through virtually everything”.

Sage has taken the decision that rather than developing its own cloud infrastructure, it is going to align itself with Microsoft and use its assets, which TechMarketView believes is a “pragmatic decision that will help accelerate its cloud portfolio”.

Eager said: “Berruyer and his team talked of tough decisions made and of more to come in terms of where to allocate resources and how to run businesses, the need for growth and the need to execute.”

“It is down to execution now, but we came away from the event feeling positive.”

Share:

Comments

Sage to double growth rate by 2015
Technology

What does your perfect datacentre look like?

What does your perfect datacentre look like?

The financial impact of rising energy bills is a headache for companies toomore ..


Home Office tenders for £1.5bn emergency services telecoms network

The ‘cheaper and smarter’ ESN will replace an existing contract with Airwavemore ..

Quarter of UK businesses lack mobile strategy

Despite it being considered as a 'fourth utility'more ..

Microsoft to seal Nokia deal on Friday

Microsoft is now in the smartphone business, with models for both Windows Phone and Androidmore ..

What UK business needs to do now with big data

In the final of a three-part series, we look at the potential for companies to become victims in the battle for big datamore ..

Ethical questions around big data

In the second of a three-part series, Pat Brans looks at the ethics of collecting 'big data'more ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *