Sage Announced HRMS Moving to Subscription License and Pricing –
Affects ALL HRMS Users
Earlier this year, our VP of Sales and Marketing Sheri Blaho, covered this big shift from Sage (read about that here)to move all HRMS users to subscription pricing. Testing has been completed by Sage and they no longer sell new Sage HRMS as a perpetual license, only subscription pricing. This will also affect every current Sage HRMS client and will require a choice about your license moving forward. We will be hosting an informational webinar about what this means specifically along with action items for our HRMS clients.
In Sheri’s previous article she answers some questions about this change. Here is an update to those answers.
What will change about my software? Is this a shift to the Cloud?
Your core software will have no change whatsoever. Your core functionality will remain the same and how it is installed will also remain the same. This is a change to your license and how you pay, not the software itself. However, Sage will have execute their ability stop your software operations if you do not make timely subscription payments. More on that later…
Why the Change?
Sage has recognized that the HR/Payroll software market is moving to subscription pricing and to stay competitive for new buyers they need to make this change.
What will this mean for Me?
You now have a necessary choice on how you move forward with Sage HRMS. You can stay on your current perpetual license, move to a subscription pricing, or leave the HRMS product. If you stay with your current perpetual license, your annual price will increase aggressively (30% in the first year), and your only updates will be required federal and state report changes. If you move to subscription pricing your software functionality will also remain the same but if you are not current on your payments, Sage will have the ability to lock out your software. The cost to move to subscription pricing varies based on number of employees and modules owned. Year over year price increased are anticipated to be about 10%. And of course, leaving the HRMS product is an option that you should consult with your current HR/Payroll partner if that is an option you are exploring.
Do I have to make this change?
Yes and no. As stated above, you can remain on your current license structure, but you will face pricing increases and some limit to functionality until you do opt to move to subscription pricing. If you do move to the new pricing before September 30, 2021, you will be given special pricing as much as 50% off MSRP with a capped annual price.
What are my benefits?
As stated above, there are financial benefits to moving before September 30, 2021, but as far as software functionality goes you will not see any functional changes beyond an updated user interface (will not require new training, will not change workflows or button locations).