Management consulting firm Strativa has one of the more informative analysis of Sage Live accounting system. Their post adds some practical considerations and observations which may be useful for anyone considering Sage’s new offering.
Sage Live is Sage’s pure SaaS offering for companies with 10 to 200 employees. In development since January 2015 this accounting system currently offers primarily general ledger functionality though added features are coming soon. It is built on the Salesforce platform and according to Strativa’s blog post:
By design, Sage Live will not provide functionality outside of accounting systems. Sage believes this strategy will make Sage Live more attractive for other AppExchange partners. In the latest iteration of the Salesforce platform (dubbed Lightning), users can easily drag and drop functionality from different AppExchange partners into the user’s system. Sage is banking on having Sage Live appear as an attractive option for those customers looking for financial applications.
Generally Strativa believes that, at least initially, Sage Live has the best chance of success by marketing directly to existing Salesforce users. The downside to Sage Live, as noted in their blog post, is the reliance on multiple integrations to create one full accounting system:
In our ERP and CRM selection consulting, we have already seen cases where Salesforce.com is far from the low-cost provider. This is especially true when multiple AppExchange partners are needed in the deal. If an ERP system is delivered as a set of composite applications from different providers, can it possibly be cost-effective compared to a solution from a single provider? In the case of Sage Live, a higher price point is unsustainable, since other providers such as Quickbooks Online and Xero are aggressive in pricing and have broader feature sets at this point.