xTuple: We’ve Made ERP Fun Again – By Making Fun Of Sage

Another day – another somewhat crazy email from a software publisher promising implying high commissions to Sage partners who looking for the golden ticket that returns them to the 1980s glory days of 50% or higher margins.

Software publisher Accountmate sent a somewhat similar  channel wide communication to Sage partners August 27, 2012.

Is this all talk or have some software publishers discovered a secret way to reward their partners with lifelong high margins and effortless upgrade revenue streams?

This time the email arrives from Open source ERP provider xTuple  who is the latest publisher to mine the disaffected Sage channel with a broadcast email today that uses a graveyard image of discontinued Sage products to poke fun of the recent decision by Sage North America to prune back some Sage product lines.

While the email does not mention Sage (or any) ERP provider by name it does include a graphic image of a grim reaper passing through a graveyard scattered with tombstones marked for the following Sage products:

  • Sage BusinessVision
  • Sage Pro ERP
  • Sage 500 (formerly MAS 500)
  • Sage BusinessWorks

The Sage products listed were all announced as reaching an end of life date some time in the not too distant future. Sage 500 was the only product with a timeline of “at least 5 more years’ support” while the remaining listed Sage products still await their announced end-of-life dates.

xTuple, whose website indicates they’ve been operating  since the sumer of 2007, markets the open source xTuple PostBooks and xTuple in various licensing configuration which seem eerily similar to Sage (Perpetual, Annual On-Site, Annual In Cloud).

xTuple is built with the open source PostgreSQL database and the open source Qt framework for C++

The email, which was sent by xTuple Business Development Director Danielle Kerner goes on to describe “generous commissions, up to 55% on xTuple products and 80% on Marketplace sales” and ” revenue on implementation services, even using FREE version (100% is yours to keep)”.

The xTuple website advertises service and support direct from the publisher – with services ranging from Implementation Quickstart for $17,000 and less expensive options for classroom training.

It’s unclear from the web site whether xTuple provides these services themself, competes with their partners to provide them or if they subcontract to a separate professional services organization.

The  xTuple web site also appears to offer several products which look  to be sold to the end user direct from their web site. These products range in price  from an enhanced commission package for $10,000 to a more reasonable Fixed Asset bundle for $795.

xTuple is the latest to make broad promises of 1980’s era commission on product sales in an effort to mine the Sage channel for partners looking to take on more profitable products.

At least xTuple says it will be more profitable. They must know because their web site appears to be doing ok selling this direct to customers and now they seem like they’d compete with partners for the same business.

Crazy?

xTuple for Sage Partners

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Comments

  1. The main issue with companies/products like X-Tuple (formally OpenMFG) is that customers who expect to pay very little for full-fledged ERP software often don’t have the expertise or sophistication to implement the software nor do they want to pay for professional implementation. IMO this makes it tough from a VAR/partner perspective.