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SAGE: U.S. LAGS ON SUBSCRIPTIONS Featured

Stephen Hare, SageThe installed base in the United States lags other major markets in moving from license sales to subscriptions, Sage said this week. That came as the United Kingdom-based company issued its trading update for the first quarter ended December 31. The company reported growth of 5.1 percent over the year-earlier quarter.

In some countries, Europeans companies issue trading updates for the first and third quarters. Actual earnings and revenue are not released for those quarters. During this week's update webcast, CFO Stephen Hare said only France and South Africa have approximately 50 percent of its base as subscription customers. The U.S. total lags at about 10 percent. Hare attributed that to the level of maintenance subscriptions, highest in all the markets. "Historically, the growth came from upselling maintenance and support," Hare said. That means users need improvements to the software to convince them to move away from license sales. Hare noted that X-3 continues to be sold primarily via licenses. He also discussed the source of X-3 customers. "We have some migration from other Sage products, but that is the exception," Hare says. "It is primarily a new customer acquisition tool."

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