Sage Distribution Australia (SDA), the wholly owned Australian distribution arm of Sage Software, has attracted 75 new resellers since March last year. As middle market accounting software vendors battle it out in an increasingly competitive market, sage has developed a strategy that is paying off.
Leveraging its dominance in the global market with $536 million in revenues and a 40 per cent return to investors, the bullish recruitment drive is part of SDA's two-year strategy to establish its place in the Australian accounting mid-market space.
With reseller partners now standing at 115, SDA managing director John Marshall claims it's not the number so much as the quality. "It's all very well to say you've added so many resellers but they're quality resellers committed to Sage," he said.
"We're well on track" to reach the company's target market share of 10 per cent and customer base of 60,000, Marshall said.
Sage Software has achieved strong growth in overseas markets through acquisitions and Marshall doesn't rule-out similar strategies in Australia. "We're always open to opportunities," he said.
One opportunity SDA is sure to cash in on is the introduction of the GST. "The GST will have as big an impact on small businesses as Y2K," Marshall claimed.
Marshall believes the rush on new accounting systems is beginning to pick up, as companies realise its better not to wait. This rush should present Sage resellers with a competitive advantage when it comes to rolling out GST-compliant software modified for the Australian market, he added.
"Resellers are on the ground floor and they've already started to receive information from Sage about products and specifications," said Marshall. "It's definitely an opportunity."