News and Analysis

News and Analysis (15658)

SAGE ONE STRUGGLES IN U.S

Stephen Hare, SageSage One has improved its performance around the world. However, it continues to be challenged in the United States. "To be frank, in some months, we still lose as many customers as we acquire," CFO Stephen Hare said in the recent webcast of earnings for the year ended September 30 in describing the product's performance in this country.

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COLUMBUS BUYS U.K. COMPANY

Thomas Honoré, ColumbusColumbus has acquired Cambridge Online Systems, an IT services company based in the United Kingdom. Columbus, a reseller and software developer based in Denmark, said the purchase is designed to help it expand in the Microsoft 365 market, along with growing its cloud and Office 365 business in that country.

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QAD: SUBS UP, LICENSES DOWN

Karl Lopker, QADManufacturing software QAD turned in a performance for the third quarter ended October 31 that sums up the current market. Revenue from subscriptions rose sharply as license fees dropped. During the company's recent earnings webcast, CEO Karl Lopker noted license revenue fell faster than expected.

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INTACCT'S BURCH NAMED ITA CHAIR

 Peyton Burch, Information Technology AlliancePeyton Burch, Intacct's director of channel sales, has been named chair of the Information Technology Alliance. The organization also named Baker Tilly CIO Allen Smith as vice-chair. The announcement was made during the ITA Fall Collaborative in Las Vegas. Burch has been with the cloud software company since October 2010.

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SAGE INCREASES FEMALE LEADERS

Steve Kelly, SageSage has put an emphasis on increasing the number of women among its executive ranks. According to CEO Steve Kelly, in the last 18 months women have risen from representing a quarter of the top 150 of the company's leaders to one third. Kelly made those statements in the company's recent webcast for its earnings for the year ended September 30.

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ROPER TECHNOLOGIES BUYING DELTEK

Mike Corkery, DeltekDeltek is being acquired from investment firm Thoma Bravo by Roper Technologies in a $2.8-billion deal. Under the agreement announced this week, Deltek will continue to operate under its own name and current management as a separate company. Thomas Bravo acquired Deltek for $1.1 billion late in 2012.

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SAGE: U.S. NEEDS NEW CUSTOMER FOCUS

Stephen Hare, SageSage was very happy with the results for its fiscal year ended September 30. However, the message for the future is that the United States needs a greater focus on selling to new customers. No specific plans were disclosed. But CFO Stephen Hare, in discussing the high level of support contracts in this country, noted, "This reflects the historical focus on the installed base.

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ORACLE LAYS OUT NETSUITE PLANS

Jim McGeever, OraclePartners received a great deal of attention this week as Oracle laid out its plans to integrate the recently acquired NetSuite. "We will have a lot more partners to work with this around the globe," says Jim McGeever, who will be running NetSuite, reporting to Oracle CEO Marc Hurd. "We will have people on the ground to help with roll outs." It's no surprise that NetSuite CEO Zach Nelson will not be in day-to-day operations. Hurd said in a webcast that Nelson will be a company evangelist, but provided few details. There was also an emphasis on upgrading channel skills. Many calls coming into support are partner implementations, executives said. There will probably be certifications for specific staff within partner organizations on specific skills. The presenters, including NetSuite founder Evan Goldberg, placed heavy emphasis on the interaction between the software from the two companies. Steve Miranda, Oracle's SVP of applications development, said NetSuite customers will have access to all data collection and machine learning. He said via Platform and a Service and Infrastructure as a Service, NetSuite customers receive access to all Java-built and Oracle-built applications and Oracle will be able to easily extend its EPM functionality into NetSuite. The company will also be able to share designs across NetSuite and traditional Oracle applications.

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SAGE NORTH AMERICAN PREZ LEAVES

Marc Scheipe, SageThe game of executive musical chairs at Sage is continuing with the departure of Marc Scheipe as president of Sage North America. Scheipe took over in October 2015 as interim president and got the permanent (?) job in February. Nancy Harris, who is stepping in as interim president for the continent. In an internal announcement, Harris said Scheipe has decided to pursue other opportunities. A lot of that going around Sage these days. Harris ran the software company's operations in Canada until becoming VP of Sage's North American partner and accountant business in August. I had been wondering how badly Sage needed a North American president after appointing Blair Crump, based in New York, as worldwide president.

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PRODWARE SALES OFF 4.4 PERCENT

ProdwareFrance-based reseller Prodware reported a 4.4-percent decline in revenue for the third quarter ended September 30. Revenue reached about $34.4 million in the most recently ended. The VAR markets Dynamics AX/NAV/365 and CRM. Given the declines, Prodware is in the middle of a change. In its earnings report, the company said it "is continuing its transformation plan initiated during this period, with a focus on shifting its offering towards digital, recurrence and the market's most profitable segments." Prodware sells Dynamics in EMEA and Sage software in French-speaking countries." One factor in declining revenue was the switch to revenue from SaaS subscriptions, which produce less income initially than do license sales, but bring in revenue over three to five years. Revenue for nine months was about $124.2 million with about $14.8 million coming from SaaS, up about 43.3 percent from the corresponding period a year earlier. Also taking a toll was business in France. On a comparable basis, sales in the French-speaking region dropped to approximately $63.1 million, a decline of 7.6 percent from a year earlier. The company will report earnings later.

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