We are making changes in how we run our ProvideX business
First of all, I would like to thank you for all you do in order to serve and support our joint customers. Your diligence as well as commitment to excellence has made FY10 a very successful year.
As you know, FY10 has become a rebuild year for the Sage Mid Market ERP (MME) business unit – where we have focused both on the growth of the business as well as simplification of our portfolio, services, and processes.
- We are positioned to go beyond the targets we aimed at the start of the year.
- We are witnessing the recovery of the ERP category with favorable overall revenue increase for Sage ERP in the second half of the year.
- Through the outsourcing of our ClientCare activities to Service Source, Inc. (SSI), we’ve seen significant growth in average renewal rates.
- By refocusing our roadmaps, our Net Promoter Scores have grown an average of 11%.
- We’ve witnessed solid cross-sell success with Sage Payment Solutions sold to over 10% of our Sage MAS 90 ERP base, and Sage CRM to over 30% of Sage ERP Accpac customers.
- And most important, we have made selective investments to position the portfolio for further success in FY11, such as Sage MAS 200 ERP Relational Database (RDB), Sage ERP Accpac web deployability (6.), and Sage ERP X3 channel expansion.
These accomplishments have not always come easily and that I thank you for your trust and commitment through this process. We have made some tough decisions in order to streamline our portfolio including the removal of product editions with very few customers, the open-sourcing of Sage ERP MAS 90 and Sage ERP MAS 200 Extended Solutions, the standardization of version support (N-2 as goal), and leaving some Endorsed Partner third-party relationships. Challenging changes such as these have enabled us to refocus resources toward strategic investments which include Sage MAS 200 ERP RDB and Sage ERP Accpac Version 6.
As a next step in our simplification quest, we are making adjustments to the way we run our ProvideX business. As you know, ProvideX is the embedded database for our Sage MAS 90 and Sage MAS 200 ERP product line and is a key enabler of the Sage MAS 90 ERP low total cost of ownership (TCO) and ease of use. The ProvideX intellectual property, which Sage owns exclusively, is strategic to our Sage MAS 90 and Sage MAS 200 ERP business.
Within the last several years, we have run ProvideX as a separate revenue line, selling the use of the language to only a few non-Sage, non-Sage MAS 90 and Sage MAS 200 ERP customers. To better serve these non-Sage customers, we have decided to license our ProvideX technology to Ontario-based PVX Plus Technologies in Markham, Canada, to be used with non-Sage products. This transfers accountability for non-Sage ProvideX customers to PVX Plus to ensure those customers get the dedicated focus they need, at the same time enabling Sage to focus solely on optimizing the delivery of ProvideX technology to our Sage MAS 90 and Sage MAS 200 ERP customers.
Sage MAS 90 and Sage MAS 200 ERP customers and business partners will not be impacted in any way by this new agreement with PVX Plus. They will continue to benefit from Sage’s full ownership of the ProvideX intellectual property and our resolve for improving ProvideX for Sage MAS 90 and Sage MAS 200. We have been working closely with PVX Plus to communicate this positive change to non-Sage ProvideX customers over the next few weeks. Should you receive concerns from your customers about ProvideX, please refer to the brief Q&A document.
I expect FY11 to be another strong year for the Sage ERP portfolio, in line with the decisions and selective investments we have made; and I am excited about the tremendous prospects for our joint business. Thank you for your support and hard work over the past year to make it possible.
Sage Mid Market ERP Solutions