Products and Services

“From start-ups to larger organisations, we make it easier for companies to manage their business processes more efficiently”

Sage’s products help our customers manage business processes across different functions, from accounting to payroll and human resources to invoicing, stock control and customer relationship management. The Sage brand is admired and trusted in key SME markets around the world, and our name is an important tool in building and maintaining our market-leading positions. Our products and services integrate and complement each other so we are able to support a wide variety of businesses, from start-ups through to complex multi-divisional organisations operating in the mid-market segment.

Our model

“Local products for local markets”

Our decentralised organisational model, local product strategy and industry specialisms give us a unique insight into our customers’ businesses. Through innovation, we translate this into an offering that fits the specialised needs of SME customers. This is one of our competitive advantages and it has allowed us to build successfully our market position.

Product mix - FY07

Sage derives 30% of its revenues from software licence revenues, 61% from service support contracts and 9% from other services such as payment processing and insurance services.

2006/2007 Revenue source

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Product lines - FY07

Our main product lines are:

• Accounting and financial management
• HR and payroll
• CRM (customer relationship management)
• Industry-specific solutions
• Payment processing services

Just under half our revenues are now derived from pure accounting software, our original product line. Payroll and Human Resource software make up 12% of revenues, and the fast-growing, industry-specific software now contributes 30% to our sales – compared to 4% in 2000. Customer relationship management (”CRM”) was not part of our product portfolio in 2000, but now makes up 6% of our total revenue.

Changing revenue mix of products

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Service support

Service support is an integral part of our product offering. We have over 1.7 million support contracts and every day we take over 36,000 service support calls from our customers around the world. On average, 80% of our customers renew their support contracts every year, and many customers upgrade each year to premium support contracts.

Support contracts ( 000 )

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Packaged combinations

Our customers are also increasingly demanding “packaged” combinations of software upgrades and support services contracts. These combined software/support contracts constitute an increasing portion of our services revenues as customers appreciate the convenience of automatic annual updates to their software.

Growth in combined software/support services revenue

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Industry sectors

Sage also provides software and service applications customised to the requirements of specific industries. Many of our industry-specific solutions are sold through our global distribution network of 25,000 business partners and 40,000 professional advisors recommending Sage products. Our distribution strength is an essential contributor to our continued success in building our customer base.