Sage Accused of 'Strong Arm' Tactics Over Move To Software Subscriptions
Published on December 31, 2022 at 05:31AM
British businesses have complained about the tactics used by Sage, the UK's largest listed tech company, to push them into accepting more expensive subscription services or have access to their existing accounting software packages switched off. From a report: Small companies across the UK rely on the FTSE 100 company's Sage50 software for book-keeping, sending invoices, processing orders and helping with tax payments. But in recent months, Sage has pushed customers who had been sold single-payment, long-term licences to the software on to monthly subscriptions that work out to be more expensive over the long run, by saying they would turn off their licences on security grounds, despite having no specific grounds to do so in their terms and conditions. "It's a pitload of crap," said Kate Barton, owner of model train company Reeves 2000, who last upgraded her so-called perpetual package in January 2019 for a licence she expected to last 15 years. Barton now faces monthly payments of $187 on a subscription model. "This is a bigger picture of the way things are going, where we're forced on to a subscription for everything," she said. "It's quite frightening." Under the direction of chief executive Steve Hare, Sage's focus on subscription software forms part of a plan to achieve more regular recurring revenues, which would make it less vulnerable to the income shocks that can occur from an overreliance on new customers making one-off purchases.
Published on December 31, 2022 at 05:31AM
British businesses have complained about the tactics used by Sage, the UK's largest listed tech company, to push them into accepting more expensive subscription services or have access to their existing accounting software packages switched off. From a report: Small companies across the UK rely on the FTSE 100 company's Sage50 software for book-keeping, sending invoices, processing orders and helping with tax payments. But in recent months, Sage has pushed customers who had been sold single-payment, long-term licences to the software on to monthly subscriptions that work out to be more expensive over the long run, by saying they would turn off their licences on security grounds, despite having no specific grounds to do so in their terms and conditions. "It's a pitload of crap," said Kate Barton, owner of model train company Reeves 2000, who last upgraded her so-called perpetual package in January 2019 for a licence she expected to last 15 years. Barton now faces monthly payments of $187 on a subscription model. "This is a bigger picture of the way things are going, where we're forced on to a subscription for everything," she said. "It's quite frightening." Under the direction of chief executive Steve Hare, Sage's focus on subscription software forms part of a plan to achieve more regular recurring revenues, which would make it less vulnerable to the income shocks that can occur from an overreliance on new customers making one-off purchases.
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