Sage restructures to hit mid-market

Sage restructures to hit mid-market

UK accounting software firm Sage has restructured its local presence to better penetrate the mid-market where it sees lots of future potential.

The company recently acquired another software supplier, Tetra, and plans to discard that name in Australia to build brand awareness of Sage.

Sage will now operate with two principal divis-ions, Sage Distribution Australia (SDA) and Sage International. The two divisions will target small- and medium-sized businesses respectively.

Sage's general manager, Brett Mundell, said the company was considering application service provider (ASP) opportunities, but only in the mid-range business sector. SDA has no plans for ASP involvement with SME companies, he said.

SDA has doubled the number of its resellers since last year and plans to add even more to its channel, he added.

`We wanted 200 resellers by the end of 2000. We'll easily get that,' he said.

SDA managing director John Marshall said that even with the existing SME accounting packages (MYOB, Quicken) there are still about 250,000 small businesses not using any sort of accounting software. These businesses have been identified as SDA's main target, he added.

Sage will release its first GST-'friendly' accountancy software package in January, but the package won't be fully compliant with the Australian tax system until after June 28 next year, said Marsall.

Until then, versions of Sage's accounting software package will provide `traditional' GST calculations.

`Australia's GST system will be far more complex,' Marshall warned. The company will not change prices (ranging from $299 to $10,000) according to software upgrades, he said.

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