I have a slightly different take on this presentation, although I do think Wayne captured it well.
1. Sage has always clouded the specific sales numbers. I thought this was more transparent because they actually shared some sales targets in terms roughly useful to us.
2. They need Sage 100 customers to stick around more than a few years."215 BMA NCA units" is rare to see. That they then want to take 355 of BMS customers into Intacct is quite open. Sage 100 is >75% of their BMS definition, so ~250 targeted? Out of 14k installed base. ALSO they want ~40% of Intacct sales to come from this; like Doug, I saw numbers indicating that current upgrade rates are nowhere near this.
3. Intacct seems to do unusually well for CPA firms. I have a hard time seeing this concentration translating into distrib/mfg migrations. there is a reason we have yet to see many success stories of 100>>Intacct migrations for these types.
4. In terms of transparency, they shared that progress towards 3 of their execution priorities are not doing as well as they want. While not truly "bad news" this is a bit unusual.
5. Churn rate is low enough to be a "green" area. This surprises me a little.
6. ISV add-ons are meeting expectations. This seems to be where a lot of their touted 10% recurring rev growth comes from. From the nature of webinars so far, I think most of this is tied to enhancing Intacct-X3.
7. Sales Admin. In the aughts, an experienced Sage sales mgr volunteered to clean this up. He stayed a half-dozen years and made remarkable progress. Since then these managers leave on an 18-mo cycle or less, often without much impact The problem is likely due to both mgrs with inadequate sales experience (to understand their "customer" (partners) and to Sage enterprise-wide structural problems. Past is prologue: this will likely never actually be good. Still, it is better than when Sage reps were calling our customers and making things worse. The temporary didn't say anything useful
because he's temporary (and he couldn't even construct a slide that clearly showed the difference between several branches with identical titles for people).
8. Employee retention. I don't recall this item ever being on a Sage slide. Frankly, I think this is pretty brave. Compared to the Kelly era, morale is much better. I do wish they'd shared a bit more about what they plan to address this. I still think Sage NA is basically a ''training ground" for professionals, and not a place where a degreed employee will find the passion there was at SOTA.
9. The one part I thought they should have spent a bit of time on was, "How we plan to attract the 215 BMS NCA customers." I heard nothing about prospect profiles, and nothing about product marketing for them. Because they consistently skip over this, and over significant descriptions for current S100 customers they focus on for migration, I think Nancy T continues to be more than a little tone-deaf about what this audience wants to know.
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Jerry Norman
At-Large BOD Member, 90 Minds
Smartbridge Partners
512.419.1444 x112
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Original Message:
Sent: 02-17-2022 14:14
From: Wayne Schulz
Subject: Partner call
Today I Learned ( TIL ) :
- FY22: Sage has a goal to migrate 355 BMS to Intacct ( presumably this means 100 and 300 ) and sell 1,939 SPC
- FY22: Sage has a goal to sell 215 BMS units ( presumably 100 and 300 ) and 783 Intacct
- 1/3 to 1/2 the partners moving up in tier appear to be CPA firms
- Sage Intacct partner of the year ( apparently this was announced back in November 21 ) Baker Tilly
- Sage Intelligence "two step" continues - no longer available for Sage 50, Sage 300 web screens "we still have some technical risk that we continue to mitigate.", "We have NOT announced a change in status of desktop Sage Intelligence for Sage 100, 300 or 500"
- Work Order Is Dead - Long Live Work Order ( version 2022 ) ... provided you can beg for unlocking keys which will be company specific
- Sage Partner Cloud - we'll keep showing these slides until customers buy in greater numbers
- Sage Partner Cloud - can't figure out why partners don't want to use email marketing campaigns for SPC ( when some fo the campaigns are branded with a big competitor logo )
- ISV Webcast Series - same old same old
- Sales Admin Team Goals - get back to partners within 2 days
- Sales Admin Team - talk about use of Smartsheet 3.0
- Sales Admin Team - Org Chart - don't bother saving this one , it'll probably be different in 90 days
That's all I picked up from the meeting
Did not hear Sage 500 mentioned except in passing as needed to discuss other products ( like Sage Intelligence ).
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Wayne Schulz
wayne@s-consult.com
http://www.s-consult.com
Schulz Consulting
860-516-8990
Moodus, CT
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