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SAGE: SUPPORT KEY REV DRIVER

Paul HarrisonAn increased emphasis on selling premium support contracts is going to be one of the major initiatives undertaken under new chief executive Guy Berruyer. That was one of the points made this week as Sage Group executives spoke to analysts in a day-long conference in London. Increasing support revenue remains important for on-premise products, but will also be an important revenue generator in the SaaS world.

"We see support as a growth driver quite separate from connected services," said Paul Harrison, group finance director of the Sage Group. Executives talked about using connected applications to increase revenue per customer, citing sales of services and products such as email marketing and mobile data. But Harrison also emphasized the success Sage has had in Spain in moving customers to premium support so that support revenue growth has outstripped the change in license revenue. He noted that the same is not true with Peachtree and that for most of Sage, "Premium support is in its comparative infancy."
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