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."