Pastel Software Australia has inked a deal with Sybiz Software to distribute a mid-market ERP/business management software solution dubbed Evolution.
Under the agreement, both companies — commonly owned by UK-based parent company Sage Group — can share channel resources and go after the cut-throat mid-market SME arena.
Pastel managing director, John North, said the company was joining forces with Sybiz to sell into the Australian market, eliminating branding and pricing confusion in the process.
Pastel has a strong history of selling Evolution into the South African market. Now linked here in Australia, the trick would be to not step on each other’s toes, North said.
Both companies were meeting to discuss selling and territorial strategies, he said.
“It’s an unusual situation — we’re after the same customers,” North said.
Both companies would work to minimise cross over.
Pastel resellers — there are about 450 listed in Australia that mainly service the low-end of the market — can gain market share by offering Pastel products (including Pastel Partner) along with Sybiz Evolution, addressing all segments of the SME space from 5 to 100 seats.
Traditionally, Pastel sold into organisations of up to 50 seats.
Sybiz, in turn, had about 70 high-end partners peddling Evolution and Vision gear, managing director, Peter Whalley, said. It would benefit from the expanded market penetration and additional feet on the street selling the Sybiz gear.
“It gives the channel partners options,” he said.
They could now sell across the entire SME space.
“It gives them the opportunity to attend to the early rise in the hot mid-market,” Whalley said. Pastel resellers, who typically had to go after a Great Plains solution to address the high-end of the market, could now grab onto Sybiz, he said.
Going a step further, North said there might be instances where Pastel and Sybiz resellers could go into a job together — depending on the size — and share the client.
A key selling pitch, he said, was that the Evolution product added functionality (centred around CRM) and was priced in the $7000-$8000 range.
The Sybiz/Pastel channel partnership comes into effect in April — with resellers getting access to a three-day product training course in March, North said.
Information on sales strategies and local development would also kick in for partners as part of the agreement.