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SAGE LOOKS TO PARE PRODUCTS

Sage logoSage plans to allocate more resources to the products that make more money. That’s the plan announced this week by chief executive Guy Berruyer after the company released results for the half ended March 31. And he also said Sage will move to "a more centrally driven approach to planning, setting priorities and running the business, It will fundamentally change the way we run our business."

 

The company has 270 products and 70 code bases and with the new plan "We have identified a clear opportunity to streamline our portfolio,” he said. The impact, he continued is, "We can reallocate investment to growth area more easily.  He did not provide details, which he said would have taken took much time from the earnings call. However, this sounds a good deal like the action of Sage North America a few years ago to place some of the more historic products in the “Value” category and spent the next few months denying that those would suffer. Berruyer sounds more serious about this. He also did not specify how the new approach to running the business would be implemented. But he said where it made sense the company would seek to scale opportunities "where greater collaboration and centralization make sense" while maintaining an approach that recognizes local market differences. Berruyer said the plan would be discussed in depth at the company's investor day in July. Sage could benefit from something new. Its 2 percent revenue growth contrasted with the 11-percent increase in Dynamics revenue for the March quarter.
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