Sage Strengths, Domain Expertise, and Key Differentiators
To enhance its position in these domains, Sage is capitalizing on the proficiency and SaaS DNA of Intacct. Leveraging the longstanding accounting relationships it has cultivated with regulatory bodies and financial institutions, along with its unique access to valuable data, Sage aims to better serve emerging digital networks. Recognizing the power of collective data, over 6 million organizations manage their businesses using Sage software, primarily within the Sage 50 franchise. Additionally, approximately 200,000 customers utilize X3 and Sage BMS (formerly known as Business Management Software). Notably, Sage has shifted from using the ERP label, opting for Business Management Software instead. Sage Payroll, which supports over 30 million employees worldwide, is employed by 8 million businesses in the UK alone.
Sage Recent Developments
In March 2024, Sage introduced Sage Copilot, an AI-powered productivity assistant, alongside enhancements to Sage Intacct.
Sage Copilot, the new AI-driven productivity assistant, functions as a reliable team member, efficiently handling real-time administrative and repetitive tasks. It goes beyond mere task automation by offering tailored recommendations to help customers carve out more time and resources for focusing on the growth and scaling of their businesses. This innovative tool streamlines workflows, identifies errors, and provides actionable insights to meet the diverse needs of businesses and accountants. Sage Copilot excels in tasks such as forecasting, cash flow management, and the creation and sending of invoices, all through simple, natural language commands. The development of Sage Copilot prioritizes accuracy, security, and trust at every stage, incorporating expert support, robust encryption, access controls, and compliance with data protection regulations.
In February 2024, Sage enhanced its construction cloud portfolio to provide enhanced services to its customers. The expanded portfolio includes the following solutions:
Sage Estimating with BidMatrix: Sage Estimating, recognized as the industry's most widely used construction estimating software, now incorporates advanced cloud capabilities through BidMatrix. This integration introduces a virtual bid room designed for collaborative efforts, sophisticated analysis features facilitating the identification of optimal subcontractor bids, robust slice & dice capabilities, and seamless integration with Power BI for insightful data interpretation. By leveraging these solutions together, users can harness the efficiency of Sage Estimating's powerful features alongside the collaborative, scalable, and innovative capabilities offered by the cloud. This synergy enables construction firms to secure projects more effectively, ensuring competitive pricing and increased confidence in their bids.
Sage Construction Management: A cloud-native project management solution, Sage Construction Management is tailor-made for collaboration and mobility. This solution empowers field, office, and external teams to share real-time project information, facilitating quick and informed decision-making. With the ability to manage all project operations from a unified platform accessible anytime, anywhere, and on any device, businesses can enhance their competitive edge by winning more work and executing projects with greater efficiency.
Sage Intacct Construction: Designed specifically for the construction industry, Sage Intacct Construction is a cloud-native financial management solution. It represents the fastest-growing vertical within the Sage Intacct Financials framework. This purpose-built solution enables proactive management of critical financial and operational metrics, leading to increased efficiency, reduced audit time and costs, and improved cash flow. Recent updates expand the cloud-native capabilities to cater to a broader audience of construction and real estate businesses, providing comprehensive support for detailed job costing, revenue recognition, retainage billing, and payroll management.
October 2023 saw the introduction of Sage HR for Sage 50 in the U.S. and Canada by Sage. Pioneering the industry, this novel solution establishes robust integration among accounting, HR, and payroll processes. This integration empowers teams to enhance their agility and meet the evolving demands of a contemporary workforce. Notably, the Sage HR integration is exclusively accessible to Sage 50 customers who have a Payroll service plan.
Sage Mergers and acquisitions (M&A) Activities
In January 2024, Sage acquired Bridgetown Software, the proprietor of BidMatrix, a cloud-native bid analysis tool tailored for the construction industry. This strategic move aligns with Sage's broader strategy to evolve Sage Estimating into a cloud-native solution. By integrating BidMatrix into the Sage portfolio, this acquisition enhances Sage's CRE (Construction and Real Estate) offerings, blending the robust features and efficiency of Sage Estimating with the collaborative, scalable, and innovative capabilities inherent in the BidMatrix cloud-native platform.
In June 2023, Sage acquired Hubro Education, a company specializing in the creation of business simulations for academic institutions, corporations, and individual skill development. Leveraging a blend of proficiency in game development, learning science, and business studies, Hubro Education has garnered acclaim for its development of award-winning business simulations.
In May 2023, Sage acquired Corecon, a cloud-native preconstruction and project management solution. This strategic move broadens Sage's customer engagements beyond financials and solidifies its standing as a premier provider of cloud-native technology for the construction industry. The addition of Corecon offers a comprehensive solution, enabling efficient project management from the initial bid stage to project closeout.
In October 2022, Sage acquired Spherics, a carbon accounting solution aimed at assisting businesses in comprehending and mitigating their environmental footprint. This acquisition underscores Sage's dedication to sustainability, aligning with its overarching mission of eliminating barriers to enable everyone to thrive.
Furthermore in August 2022, Sage completed the acquisition of Lockstep, a provider of cloud-native technology specializing in automating accounting workflows between businesses. This strategic move propels Sage's growth strategy by enhancing its value proposition for Small and Medium-sized Businesses (SMBs) and expanding its digital network.
Sage Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Sage applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Sage and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Sage Business Cloud, Sage50 customers.
Sage Overview
Ownership: - LSE:SGE
Number of Employees: 11574
Functional Market: Absence and Leave Management, Workforce Analytics, Scheduling, Task Management, Time and Attendance, Core HR, Payroll, Compliance, Onboarding, Recruiting, Performance Management, Compensation,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
Sage Key Cloud and HCM Applications
Sage Business Cloud, Sage50
Sage HCM and Cloud HCM Applications Revenues, $M:
| Type/Year | 2022 | 2023 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| HCM Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Sage Revenue Breakdown by Type:
Sage HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets | % of HCM Revenue in the HR Segment | 2023 HCM Revenues, By HR Segment, $M | |
Sage HCM Applications Revenues By Verticals, $M:
Sage Total and HCM Applications Revenues by Region:
| Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 HCM Applications Revenues, $M |
|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe |
Sage Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Sage Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Sage Customers
No. of Sage Customers: 6 Million
No. of Sage HCM Applications Customers: x
No. of Sage Cloud HCM Customers: x
No. of Sage Cloud HCM Subscribers: x
Sage software is trusted by a vast number of organizations worldwide. The Sage 50 franchise alone serves as the backbone for over 2.5 million businesses. Additionally, X3 and Sage BMS are utilized by around 200,000 customers, with Sage Payroll facilitating the payment process for over 30 million employees globally, including 8 million in the UK alone.
Among Sage's diverse clientele are entities such as Endeavor, Smith Heating and Air Conditioning (using Sage 100 Contractor), PROPAC Pharmacy, American Pool Enterprises, Lincoln Waste Solutions, Power Distributing, Avon Rubber, TJ Furniture, Haremar Plastic, Nashville Wire, SkyGolf, RadComm Systems, USA Tile And Marble, Forma Construction, Gary Yamamoto Custom Baits, Premier Mechanical Services, Reborn Cabinets, Fincantieri Marine Group, Symington's, Oak Furnitureland, Transatel, Siblu France, Crosswater, CJ WildBird Foods, Vestiaire Collective, and numerous others.
Sage Market Opportunities, M&A and Geo Expansions
In February 2024, Sage unveiled a comprehensive set of updates for Sage Intacct. Geared towards enhancing organizational productivity, these latest improvements encompass a spectrum of features. They range from harnessing the capabilities of powerful artificial intelligence (AI) to optimize and automate project management tasks, to refining efficiency through enhanced data flows and operational processes.
Key enhancements to Sage Intacct include AI-Powered Professional Services Automation, Fixed Assets Management, seamless Data Flows for enhanced connectivity, Forms and Operational Flows, specialized forms and flows tailored for Non-profit organizations, Construction Commitment Compliance, Global expansion initiatives for Sage Intacct, and integration of Distribution and Manufacturing Operations for Sage Intacct.
In October 2023, Sage unveiled the broadening of its construction cloud suite. Introducing Sage Construction Management, the company incorporates cloud preconstruction and project management capabilities into its renowned construction portfolio.
Designed for enhanced collaboration and mobility, Sage Construction Management facilitates real-time sharing of project information among field, office, and external teams, enabling prompt and informed decision-making. This solution is seamlessly paired with Sage Intacct Construction Financials, forming a comprehensive suite that empowers operational and finance teams to align their efforts toward achieving enhanced job profitability.
While Sage has traditionally excelled as an accounting solution for very small companies, there's a potential challenge as these businesses expand and may surpass the capabilities of Sage's entry-level solutions. Sage Intacct emerges as an ideal solution for these growing companies, offering a seamless transition. The integration of common services through its Service Fabric simplifies and enhances the appeal of this migration for small businesses graduating to more advanced solutions.
Initially available only in the US and Canada, Sage Intacct expanded its reach to Australia in August 2019 and the UK in November 2019, with South Africa joining in August 2020. This expansion not only caters to companies transitioning from other Sage solutions but also targets very small businesses in their early stages.
In May 2021, Sage further extended its reach by launching Sage Intacct in the AWS Marketplace. This move facilitates an optimized and streamlined approach for early-stage SaaS businesses to access a subscription and financial management solution within an easily scalable platform. This initiative allows businesses to start small and scale up efficiently, supporting their growth trajectory.
Sage Risks and Challenges
Although the Sage Intacct segment demonstrates robustness in the cloud and SaaS market, Sage's overall performance might be hampered by its belated foray into the cloud and the historical ambiguity stemming from product naming and distinctions between cloud-connected and cloud-native messaging. Even though clarity has been established, there remains a potential challenge due to a long history marked by confusion and mixed messages.
Sage Ecosystem, Partners, Resellers and SI
In February 2024, Sage disclosed the formalization of a strategic collaboration with Amazon Web Services (AWS). This partnership aims to elevate Small and Medium-sized Businesses (SMBs) by advancing their operational optimization through generative artificial intelligence (AI) and addressing environmental responsibilities. Notably, Sage Earth is now accessible in the AWS Marketplace.
As of today, SMBs have the opportunity to harness the capabilities of Sage Intacct within the AWS Marketplace. This collaborative effort signifies an expanded relationship between Sage and AWS, providing SMBs with the tools to effectively navigate the intricacies of modern finance and concurrently adopt cutting-edge solutions to fulfill their environmental responsibilities.
September 2023 marked the initiation of a global partnership between Swoop and Sage, with the shared objective of assisting businesses and accountants in accessing a diverse array of funding opportunities. This collaboration also plays a pivotal role in identifying avenues to trim business costs, particularly in areas such as energy, banking, and foreign exchange, thereby significantly impacting the overall bottom line.
Sage maintains a robust digital and direct sales presence, bolstered by an extensive global network of partners:
A substantial force of over 100,000 Accountants serves as one of the most influential segments, offering guidance and selling Sage solutions. The network includes 40,000 Value Added Resellers (VARs) responsible for both selling and implementing Sage solutions. There are 1,000 Independent Software Vendors (ISVs) contributing additional functionality and vertical customization to Sage solutions. Several Strategic Alliances have been forged with major players in the technology space.
The Sage Partner Cloud program is designed to empower partners with the necessary tools, expertise, and collaborations for customizing and deploying Sage business management solutions in the cloud. Currently available on the Microsoft Azure platform in the U.S., Canada, and the U.K., the program encompasses Sage 100, Sage 300, as well as both Sage 100 Contractor and Sage 300 Construction and Real Estate (CRE). This initiative enables partners to effectively support their customers' transition to the cloud.
Expanding on this program, Sage partners have the option to utilize Sage-accredited cloud hosting providers when deploying customers to cloud-hosted Sage business management solutions. Initial providers include Cloud at Work and Swizznet, offering a third-party hosting infrastructure that ensures flexibility and choice, endorsed by Sage's thorough vetting process.
Sage Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
https://www.appsruntheworld.com/taxonomy
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