Accounting software specialist
Sage has expanded its business automation software portfolio
with the launch of a
customer relationship management system, Sage 200.
The software should cater for Sage's traditional customer base,
the small to medium enterprise, said David Pinches, Sage head of
product management. Pinches defines a typical client as a
multi-department firm turning over around £50m.
The launch coincides with the unveiling of a new version of
SAP. With both companies moving to the middle market, analysts
predict there may not be the demand to sustain them.
Whereas SAP is approaching the market from a high end enterprise
level, Sage claims its product is more grounded. "You are always
more likely to succeed in the mid range market when building from
the bottom up," says Pinches.
Sage's CRM system is being built on the foundation of its MMS
financials module. Pinches argued that upgrading from this basis is
a lot easier and more practical than trying to shrink down an
enterprise level system. Adding CRM functions to the core financial
product is a logical upgrade that can easily be implemented to
cover all the business processes in an organisation, he
claimed.
However, experts and existing mid-market firms are sceptical
about the prospects of firms moving into the area.
Sage's ambitious expansion plans could face challenges, warned
Clive Longbottom, service director at research company Quocirca.
"They are moving into a volatile market, with hazards like
aggressive mergers and acquisitions to be wary of.
If that was not bad enough, there is Microsoft to think about
too."
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