Sage restructures to hit mid market

Sage restructures to hit mid market

UK accounting firm Sage has restructured its local presence in an effort to better penetrate the mid-market.

The company recently acquired another software supplier, Tetra, and will discard the Tetra name in Australia.

Sage will now operate with two principal divisions, Sage Distribution Australia 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 had no plans for ASP involvement with SME companies, he said.

SDA has doubled the number of its resellers since 1998 and planned 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.

Managing director of Sage Distribution Australia, John Marshall, said that even with the existing SME accounting packages (MYOB, Quicken) there were still about 250,000 small businesses not using any sort of accounting software.

These businesses have been identified as SDA's main target, he said.

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 (the date of the Government's GST announcement), said Marsall.

Until then, versions of Sage's accounting software package will provide "traditional" GST calculations as used now in the UK.

"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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