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Report Shows VARs Leaving Sage: Will Customers Follow Suit?

Report Shows VARs Leaving Sage: Will Customers Follow Suit?

Intacct vs SageWhile reading through the recently released Top 100 VARs list from Bob Scott’s Insights (On which Brittenford joined the ranks for the fifth straight year), we happened to notice a glaring portion of the report that highlighted a tumultuous future for one of the major vendors.

Down Goes Goliath?

What started as a brief overview of how Microsoft VARs are outperforming Sage VARs took a much deeper dive into how Sage VARs are seeing declines while providers of nearly every other software—especially those in the cloud—have seen major growth.

Heavy Criticism over an Unexpected Announcement

Sage, in its scrambling attempt to provide a cloud offering to customers, its newest product, Sage Life with no forewarning to dealers.

Although this partnership with Salesforce does show that the company is trying to modernize its platform, the announcement shocked the vendor’s resellers, and was essentially another shot from Sage to its resellers, who have long criticized the vendor for mistreatment and bad channel attitude.

Bleak Future for Sage 100/300/500 in North America?

“We don’t see much of a future for that product [Sage 300] in North America,” said one historical Sage reseller, who followed up with yet another shot at Sage’s future by highlighting a “Lack of a compelling value proposition for Sage 100 maintenance renewals.”

This could be a dangerous trend, as Sage has reported worry that it was late to the game on a cloud offering, and even the current cloud offerings are yet to mature.

The Depletion of the Channel Team

One of Sage’s channel leaders, Don Deshaies VP of channel management, left the company, followed by nearly instantaneous departures of channel managers Roger Demers and Rick Burt.

This could mean a lot of things. With one of the people (Deshaies) leaving the company without a future position lined up, this could leave the channel program struggling to support resellers, who according to the top 100 VAR report have long criticized the platform for its attitude to the channel.

Related: We recently covered an in-depth comparison of Sage and Intacct on delivery models, implementation time, reporting capabilities, and more, which you can read here.

VARs (and Customers) Moving to the Cloud, Choosing Intacct

As one falls, another rises. As many of the historical Sage resellers saw decreases, those in the cloud have seen growth in number and revenue.

Bob Scott’s Insights marked the first time that more than half of resellers carried at least one cloud offering, with 55 resellers now “in the cloud.”

This has marked a continued shift from on-premise offerings like Sage to much more flexible, scalable, and affordable options like Intacct, who leads the cloud vendors with 24 VARs in the top 100.

With a heavy commitment to the channel (Given a 5 Star Rating from CRN Channel Guide) and its customers (Best of 2014 Award Winner for Customer Satisfaction from G2 Crowd), Intacct has continued to grow at an astounding pace—now serving over 8,500 customers across over 51,000 entities.

Brittenford has in turn been the company that those seeking Intacct have turned to for purchase, implementation, and support, as we recently won Intacct Partner of the Month in April. View more on that award here.

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