Sage UK Outlines Broad Plans To Streamline Product Portfolio

The Sage UK investor day is occurring and they continue to make the presentation slides available for download. Of particular interest is the slide labeled ” Focusing our business” which gives some broad ideas on what direction that Sage will guide their product portfolio.

View recorded webcast of the Investor Day

Sage as a company has largely grown by acquisition of multiple, sometimes overlapping, product lines.  Their presentation titled “Focusing our business” provides some clues on products which may soon be sunset, disposed of or receive diminished research and development funding.

This growth, while wonderful in the early years, has slowed for some products and market conditions seem likely to force Sage to focus their attention on the strongest products with the most promise.

Within the presentation Sage provides three options for resource allocation between core products:

  • Invest: High growth potential, receive additional investment
  • Harvest: High margin, major products, maintain or decrease investment
  • Sunset: Lowest potential, managed customer migration to alternatives

One slide lists the company’s non-core NA (North America) businesses:

  • Non-profit
  • Construction
  • Non-Integrated CRM

This seems to be a major signal that another portfolio re-shuffle may be on the horizon. Some products could be sold or sunset while others are left to pass gracefully into old age.

A few key products – such as Sage ERP X3 and Sage One – seem certain to receive additional investment commensurate with Sage’s view of their higher growth potential.

Sage – Focusing Our Business (PDF) UPDATE:  Webcast of the presentations are now available