News and Analysis

News and Analysis (15701)

SAGE ERP HITTING THE CLOUD

Himanshu Palsule, Sage Sage is moving major financial software products to the cloud. The SaaS version of X3 was made available this week, coinciding with the Sage Summit Conference. It is scheduled to be introduced into the United Kingdom during the summer and globally this year and next. Sage 100c and 300c are scheduled to hit the market in October. The new X3 can be deployed both in the cloud and on local services "or in an environment hosted by Sage certified partners—all with identical functionality and universal web and mobile access to their business management resources," according to the official press release.

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ROPER BUYS ONCENTER

Cecelia Padilla, OnCenter SoftwareRoper Technologies has acquired OnCenter Software. OnCenter was at least partially owned by Accel-KKR, which made an investment of unknown size in October 2013. OnCenter, in business since 1998, markets estimating and project management software. It integrates with a number of packages including Sage 300 Construction and Real Estate. It also links with Cert-In Software Systems, Roger Shaw & Associates, and Prime Estimating Software and Services.

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NET@WORK ACQUIRES AXIS

Kelly Hummel, Axis Integrated SolutionsNet@Work has purchased St. Louis, Mo.-based Axis Integrated Solutions, a Sage 300 and SageCRM reseller. Axis CEO and founder Kelly Hummel has been named Sage 300 practice director for New York-based Net@Work. With the addition of the Axis sites, Net@Work has 16 locations. Axis, founded in 2005, sold both Sage 100 and 300 and Intacct financial products. Intacct will be dropped from the line up. Net@Work handles Sage 100/300/500 and X3 and NetSuite. It also handles Dynamics CRM, Infor CRM and Salesforce.

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UXC SIGNS BIG MONEY DEALS

Cris Nicolli, UXCUXC, the Australian company that owns reseller UXC Eclipse, says it has signed a series of contracts for deals exceeding about $73.1 million ($100M Australian). That announcement followed a June 29 trading update in which it said net profit after tax for the year ended June 30 will be the $20 million to $22 million revenue range (Australian) that analysts have postulated. That compares to $15.7 million in earnings for 2014 and $22.7 million for 2013. UXC had about $565 million in revenue for fiscal 2014 so the new deals are significant for a company of its size.

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PROJECT DELAYS HURT EDGEWATER EARNINGS

Shirley Singleton, Edgewater TechnologyEdgewater Technology, which owns Dynamics Fullscope, saw a sharp drop in earnings for the second quarter ended June 30 as customers postponed the start of projects. Edgewater reported net income of $494,000 for the most recently ended period, down 72.3 percent from $1.7 million The bottom line suffered with gross profit dropping to 34.1 percent from 37.3 percent a year ago while operating expenses rose to slightly more than $9 million, an increase of 17 percent from $7.7 million in last year's corresponding period.

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SAGE LIFE NOW SAGE LIVE

Doug LaBahn, SageMaybe someone at Sage read my comment that a maintenance contract for Sage Life would be called Life Support. Anyway, the product is now Sage Live and the company gave a brief view  at the Sage Summit conference now underway. Live has three editions, Essentials, Standard and Premium. Essentials financials for one country; single-country compliance; real-time scoreboard and reporting; "Mobility, Social, and Community" (according to the slide image I saw), a "Success Support Plan"; and two designated users.

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SAGE ORGANIC REVS UP 7.3 PERCENT

Stephen Hare, SageSage says that organic revenue grew by 7.5 percent for the third quarter ended June 30, driven by a 34.2-percent rise in subscription revenue. Sage provided the information in a webcast of a recent trading update for the quarter. In trading updates, European companies do not provide earnings and revenue amounts. Much of the growth came in the United States and France, according to CFO Stephen Hare. However, Hare said, "We have started to see some impact in North America, where we have started to push upgrades and reactivation of Sage 50."

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RANDOM THOUGHTS: QUEEN ELIZABETH

Queen Elizabeth IISomebody at the pool aimed a nasty, critical remark at me last week. I responded, "I've been disliked by a lot better people than you and I'm proud of it." ...  A Detroit man has been running a center that has fowling, a combination of football and bowling. Players try to knock down all 10 pins by throwing a football. I propose a new competition called "fishling", a combination of bowling and fishing. Contestants drink beer between each ball toss and casting of the reel—pretty much emulating real life.

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PRESIDENT'S CLUB LOOKS SMALLER

MicrosoftThe 2015 President's Club for Microsoft Dynamics looks smaller in two ways. First, the decision that businesses could not be selected for both this honor and the Inner Circle decreased numbers. This year, there are 110 and the 2014 list seems to have 190 names from a rough count. Second, in the reseller arena, the P.C. firms are generally smaller than the I.C. resellers. Now, both groups include more than just VARs—for example, Fujitsu. But for the more "pure VARs"—increasingly hard to define, size is the best divider.

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NETSUITE'S SAME—REVS, LOSS RISE

Zach Nelson, NetSuiteThe NetSuite formula has been rising losses and surging revenue and that held true for the second quarter ended June 30. Its loss hit $32.3 million for the most recently ended period, compared to $23.2 million a year earlier. At the same time, the cloud company turned in its twelfth straight quarter with revenue growth of more than 30 percent.

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