Therefore, Sage/Best Software has almost all the ingredients of the recipe for success in the SME market—the functional footprint, several strong individual product brands, deep and ever-improving channel relationships, large installed base (many of which are small-offices/home-offices (SOHO), referred to as a "feeder channel"), and financial stability. Still, even if the ingredients and a good recipe are only a good start, it takes time and immaculate execution to produce a succulent dish'.
For one, the Sage/Best Software brand has yet to have a universal ring, like those of Microsoft, IBM, SAP, or even Intuit, for that matter. Given Sage's revenue level is quite higher than those of mid-market who is whos—Geac Computers, MBS, SSA Global, Infor Global Solutions, and Lawson Software—, making it an ultimate juggernaut within the SME market per se, the time has long come for its mind share to become commensurate with its size (for more information on the importance of branding and positioning, and on subtle differences between the two, see Branding and Positioning: What's the Difference? And Can You Afford It?).
Thus, despite a seemingly well crafted marketing campaign, the Best Software brand remains much less-known than those of its individual products, for example, ACT!, SalesLogix, or Peachtree, and especially ACCPAC. The company has long suffered from either the "Best who?" syndrome or the confusion with the former Abra, Carpe Diem, or FAS provider only. Additionally, the wealth of corporate names and a likely unwieldy slew of products within each of Sage's divisions and groups, presents sales and marketing confusion for the company, both internally and externally across the globe.
Sage is far from being a uniformly global company, as its product offerings differ for different markets, particularly on both sides of the Atlantic. For instance, while the unified Best brand will be increasingly applicable for the North American market, Sage offers for the other international markets a disparate line of products for small businesses comparable to the above-mentioned Best's lines (e.g., Instant Accounting for a single user, Line 50 for up to 5 users, Line 200 for 5 to 25 users, and Line 500 for up to 1,000 users).
While Best Software's MAS 500 manufacturing modules come from the company's purchase of ERP vendor Haitek Solutions in 2002, Line 500 comes from the Sage Group's acquisition of Tetra, a UK-based mid-market ERP vendor, in 1999. These deals have consequently resulted in different ERP products offered by different units of the Sage Group. After the Tetra acquisition, The Sage Group formed Sage Enterprise Solutions, based in the UK, which offered an ERP suite initially called Sage Enterprise (renamed recently Line 500). Therefore, the �one face to customers' motto might only be applicable within certain markets per se, such as North America, the UK, or France, and very unlikely across the globe.
Yet, international business is a major reason the company has to be able to use the name Sage in all markets. North America is obviously a very large contributor to the global business and several Sage and Best brands, especially in the CRM realm (i.e., SalesLogix) and its entry-level element in contact management (i.e., ACT!), have truly a global application. One of the great strengths that the vendor brings to the market is the breadth of the product selection it offers. The ability to promote true breadth under the Sage brand is important for both existing and prospective customers. Another real issue is the increasingly international scope of business, especially since Best has had some recognition in the US but virtually none internationally. This is an analysis of the equivalent moves of the two superpowers at the (perhaps even more promising) lower-end of the market, also known as the small-to-medium enterprise (SME) market segment. One player is Microsoft Business Solutions (MBS), who underwent two major, well-publicized acquisitions in the early 2000s (see Microsoft Keeps on Rounding up Its Business Solutions). The other player is the UK-based the Sage Group plc (LSE: SGE.L), who has been rounding out, also by annexation, its currently largest (SME) geographic coverage (see Will Sage Group Cement Its SME Leadership with ACCPAC and Softline Acquisitions?).
The lengthy discussion of recent events points out the fact that even the biggest and best in the market have serious issues to solve, and that no one can rest on their laurels. Also, the two SME leaders seem to have somewhat different strategies going forward, and time will tell who will ultimately win. Certainly, no one should hereby dismiss the importance and clout of the likes of Epicor Software or Exact Software in the market segment, each with own innovative twists on the value proposition (see Epicor's Mid-Market Pitch Becomes Higher For (One) Scala and Exact Software—Working Diligently Towards the "One Exact" Synergy), but both market observers and Sage and Microsoft themselves will respectfully agree that they tend to be each other's most "love to hate" opponent.
While many eyes are on MBS due to its indisputable mind share, the parent company's technological prowess, and pervasiveness/familiarity—at least on the desktop level—Sage/Best will remain the SME applications market leader for some time in terms of inexorable numbers that determine the market share-based leader. Namely, its slew of relatively recent acquisitions have created a company with well over $1.2 billion (USD) in revenues, nearly 4.5 million users and more than 20,000 reselling and software development partners. If one is to juxtapose these against the MBS' $800 million (USD) or so in revenues, over "only" 300,000 customers, and over 8,000 partners, any debate about who the current SME leader is, should cease for now.
For one, the Sage/Best Software brand has yet to have a universal ring, like those of Microsoft, IBM, SAP, or even Intuit, for that matter. Given Sage's revenue level is quite higher than those of mid-market who is whos—Geac Computers, MBS, SSA Global, Infor Global Solutions, and Lawson Software—, making it an ultimate juggernaut within the SME market per se, the time has long come for its mind share to become commensurate with its size (for more information on the importance of branding and positioning, and on subtle differences between the two, see Branding and Positioning: What's the Difference? And Can You Afford It?).
Thus, despite a seemingly well crafted marketing campaign, the Best Software brand remains much less-known than those of its individual products, for example, ACT!, SalesLogix, or Peachtree, and especially ACCPAC. The company has long suffered from either the "Best who?" syndrome or the confusion with the former Abra, Carpe Diem, or FAS provider only. Additionally, the wealth of corporate names and a likely unwieldy slew of products within each of Sage's divisions and groups, presents sales and marketing confusion for the company, both internally and externally across the globe.
Sage is far from being a uniformly global company, as its product offerings differ for different markets, particularly on both sides of the Atlantic. For instance, while the unified Best brand will be increasingly applicable for the North American market, Sage offers for the other international markets a disparate line of products for small businesses comparable to the above-mentioned Best's lines (e.g., Instant Accounting for a single user, Line 50 for up to 5 users, Line 200 for 5 to 25 users, and Line 500 for up to 1,000 users).
While Best Software's MAS 500 manufacturing modules come from the company's purchase of ERP vendor Haitek Solutions in 2002, Line 500 comes from the Sage Group's acquisition of Tetra, a UK-based mid-market ERP vendor, in 1999. These deals have consequently resulted in different ERP products offered by different units of the Sage Group. After the Tetra acquisition, The Sage Group formed Sage Enterprise Solutions, based in the UK, which offered an ERP suite initially called Sage Enterprise (renamed recently Line 500). Therefore, the �one face to customers' motto might only be applicable within certain markets per se, such as North America, the UK, or France, and very unlikely across the globe.
Yet, international business is a major reason the company has to be able to use the name Sage in all markets. North America is obviously a very large contributor to the global business and several Sage and Best brands, especially in the CRM realm (i.e., SalesLogix) and its entry-level element in contact management (i.e., ACT!), have truly a global application. One of the great strengths that the vendor brings to the market is the breadth of the product selection it offers. The ability to promote true breadth under the Sage brand is important for both existing and prospective customers. Another real issue is the increasingly international scope of business, especially since Best has had some recognition in the US but virtually none internationally. This is an analysis of the equivalent moves of the two superpowers at the (perhaps even more promising) lower-end of the market, also known as the small-to-medium enterprise (SME) market segment. One player is Microsoft Business Solutions (MBS), who underwent two major, well-publicized acquisitions in the early 2000s (see Microsoft Keeps on Rounding up Its Business Solutions). The other player is the UK-based the Sage Group plc (LSE: SGE.L), who has been rounding out, also by annexation, its currently largest (SME) geographic coverage (see Will Sage Group Cement Its SME Leadership with ACCPAC and Softline Acquisitions?).
The lengthy discussion of recent events points out the fact that even the biggest and best in the market have serious issues to solve, and that no one can rest on their laurels. Also, the two SME leaders seem to have somewhat different strategies going forward, and time will tell who will ultimately win. Certainly, no one should hereby dismiss the importance and clout of the likes of Epicor Software or Exact Software in the market segment, each with own innovative twists on the value proposition (see Epicor's Mid-Market Pitch Becomes Higher For (One) Scala and Exact Software—Working Diligently Towards the "One Exact" Synergy), but both market observers and Sage and Microsoft themselves will respectfully agree that they tend to be each other's most "love to hate" opponent.
While many eyes are on MBS due to its indisputable mind share, the parent company's technological prowess, and pervasiveness/familiarity—at least on the desktop level—Sage/Best will remain the SME applications market leader for some time in terms of inexorable numbers that determine the market share-based leader. Namely, its slew of relatively recent acquisitions have created a company with well over $1.2 billion (USD) in revenues, nearly 4.5 million users and more than 20,000 reselling and software development partners. If one is to juxtapose these against the MBS' $800 million (USD) or so in revenues, over "only" 300,000 customers, and over 8,000 partners, any debate about who the current SME leader is, should cease for now.
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