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SAGE: NONCORE DOESN'T EQUAL DISPOSAL

Klaus-Michael Vogelberg, SageThe Sage Group this week labeled a group of products as noncore. That set the buzz going in the channel about the fate of products such as SalesLogix and Act, which fell under the label. But in this week's investor's day webcast, group chief technology officer Klaus-Michael Vogelberg declared that "Noncore does not equate to disposal".
However, speculation has to be strong about what Sage intends to do with the two CRM products and with the construction and nonprofit products that were also declared noncore. Vogelberg described the nonprofit business as "a good business. It delivered good growth in 2011. It was quite profitable." Still if I were selling against Sage products in these categories, I would raise doubt in prospects' minds about the vendor's commitment. And noncore businesses will not get the same investment as core business. But I feel like we've been here before. Remember when a lot of the not-hot products were put in the value silo and Sage North America almost immediately backed off the idea that these would receive less investment. And SageCRM was already one of the worldwide products so that statement about the other two CRM apps is hardly surprising. Sage reiterated its commitment to X3 as a strategic product which is still not ready for prime time in and the United States, along with the online Sage One. Vogelberg talked about the opportunity in the millions of business with zero to nine employees. But unless Sage can do better than its woeful introduction of the cloud product, competitors should worry much. Berruyer made one very accurate point, that the goal is to execute. Sage has not been short on plans. It has been short on executing them.
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