Sage Plays Down Microsoft Fears
LONDON (Reuters) – UK software group Sage Plc played down the threat from a new Microsoft (Nasdaq:MSFT – news) product on Wednesday as it posted a 12 percent rise in annual profits, boosted by demand from existing customers.
Walker said Microsoft’s recently launched Small Business Manager accounting product was more expensive than Sage’s comparable offering and geared toward slightly bigger companies.
My spin: Sage has a 25% sales growth to existing customers – which shows customer loyalty, but only a 5% growth to new customers – not a good thing. Maybe Sage, like Corel, can do very well selling to its loyal base but do some more work in getting new customers. Also, as both MS and Sage will admit, Microsoft’s Small Business Manager is for larger customers, while Sage’s is for smaller ones. There’s room for both companies.
Microsoft picks up new.Net partner (CNET)… run its Web site and services.uBid will feature products available on Microsoft’s bCentral small-business site, the companies said…. – Dec 04 2:00 PM ET