This change from Sage of Sage 100 to Sage 100C or Cloud is a spin from marketing in order for Sage to change their billing methodology. Simple as that. Here is how that plays out:
- When Sage announced Sage Cloud it was the EXACT same base product as on-premise product as Sage 100. Sage 100 Cloud product will still be installed on your local server. If you have your Sage product hosted in the cloud today, you can continue to do that (that is nothing new. This has been an option for years).
- Then they “added” the benefit of connecting to other cloud products like Avalara tax service and NetStock Inventory Advisor (for additional fees of course). It is the cloud-based add-on products they were using to call this a “cloud offering”.
- They have added -- and will continue to add --product functionality to Sage Cloud that Sage 100 will not get. So, in the future if you want the latest and greatest of 100, you will have to surrender your on-premise license for the Sage Cloud SaaS (Software as a Service) based pricing.
- They will continue to limit Sage 100 development and increase the annual maintenance fees to the point that it will be logical to move to Sage Cloud. You can see that in 2018 and 2019 price changes. In May 2019, the prices are increasing 15% on Sage 100 and 8% for Sage Cloud. The market max for 2018 and 2019 is below 6%. So you can see, Sage is trying to catch up.
- Right now, they are offering a “Zero Cost” transition to Sage Cloud, depending on your anniversary date.
- They will also continue to raise the price of Sage Cloud to the maximum the market will allow, based on other SaaS based software. However, you will not have a browser-based product like many of the other SaaS products.
- Unlike your current Sage 100 on-premise license, if you do not pay your SaaS fees, your software will stop running after an appropriate grace period just like all other SaaS based licenses in the market.
- Sage 100 Cloud will remain a Windows based product, not a browser-based product like most SaaS priced ERP software. Sage has other products they are investing in that will be browser-based.
While these changes are uncomfortable and frustrating, it is not simply greed on Sage’s part. It is based on a major industry shift. For Sage to remain profitable and viable they must make this move.
The recommendations to our clients:
- If you are committed to staying with Sage 100 for years to come, move to Sage 100 Cloud with the understanding that you will continue to have increases every year. Watch your bill closely each year for the choices. They are a bit tricky. Just give us a call and we can help you with this decision.
- If you prefer to move to software that is current technology, you could take a risk, drop maintenance entirely and save a few dollars. BUT, you should absolutely get a new product in place within 6-12 months. Risks are minimal, but do exist (i.e. Microsoft releases an update that is not compatible with the old version of Sage). If you are printing 1099’s from Accounts Payable, the option to drop maintenance will not work as you will need the latest form templates from Sage.
- Regardless, Sage 100 and Sage 100 Cloud are based on old Windows based technology that will NOT be migrated to browser technology but still have a long shelf life. Sage is completely committed to this product line.
- However, if you want new technology for the prices you will be paying, your strategic plans should be updated to include the acquisition of a new ERP solution within 2-5 years. You will be paying the price tag with SaaS license, you deserve the current feature set that price should yield.
As always, we appreciate your trust and look forward to helping you and your company transition to this product, if needed. Do not hesitate to give us a call at (877) 496-1600 and let us know if you have any questions or other concerns about this move or these changes.
