The continuing trend in business is the move to subscription models - think Netflix, Amazon Prime, even your daily news feeds - and ERP has followed suit too.
Sage is one of the global market leaders for technology in business management and they continue to excel in the subscription world, shown through their financial results recently released for 2019.
Sage X3 is a product that was affected by the transition to SaaS (Software as a Service), with the new cloud version providing a more accessible and flexible solution for the ERP market. This month, Sage announced the great news that their organic total revenue and recurring revenue have grown considerably this financial year (2019). As an award winning Sage Business Partner it's fantastic news for Mysoft to see the continued growth and stregthening of the Sage brand.
Organic total revenue for the year to 30 September 2019 was £1.82bn, up from £1.72bn in 2018. Growth was underpinned by more than £1bn of software subscription revenue, a growth of 12.6% from the previous year. Steve Hare, Sage CEO, commented that “We entered the year with momentum and added sequential ARR (Annual Recurring Revenue) every month in the year, putting us further ahead in our transition to Sage Business Cloud than anticipated,"
He also added, “our recent strong performance and continued progress towards becoming a great SaaS company means that we can look forward with confidence."
It is expected that with this change will come a decline in other revenue, such as SSRS revenue. This is an organic shift as Sage continues to invest in the transition to SaaS. Looking ahead, Sage said that building on the “significant” ARR created in the 2019 financial year, it expected recurring revenue growth of between 8% and 9%. We look forward to joining this journey with Sage.
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