Recently, Sage begun a transition from providing traditional on-premise software solutions towards providing a cloud-based offering. Given Sage’s exposure to the SMB segment, its products are largely taking share from pen and paper or rudimentary computer-based methods common in SMBs. The Sage we see today is the result of over 100 acquisitions and as such Sage’s offering up until recently was very complex but they have since rationalised the offering. The suite of products are now organised under eight brands, both hybrid and pure-play cloud solutions, with the final aim to create a cloud-based software as a service (SaaS) provider.
In recent results this strategy looks to be working as the business has been able to increase its recurring revenue by transitioning existing customers onto the cloud and acquiring new customers. However, Sage still remains early in its transition to the cloud and is late to the SaaS party. We await further results for proof of the transition’s success.