Last week the news broke that Sage Group PLC, the UK-based company that owns Sage North America and many software brands worldwide, was planning to sell Sage Nonprofit Solutions along with a number of other products as part of its stated goal to become more focused on their core business. This news was not surprising as Sage had clearly outlined their strategy and intent to refocus their business last summer.
At JMT, we welcome this news. While the relationship with Sage has benefited Sage Nonprofit Solutions in many ways through world-class infrastructure, global brand awareness and implementation of best practices, there have been some definite drawbacks to the relationship for “non-core” vertical businesses like Nonprofit Solutions. In particular, significant resources were expended conforming to corporate initiatives and guidelines that benefited Sage in the aggregate, but may have been at odds with the local strategic goals. Further, no one missed the confusion and cost associated with frequent rebranding and product name changes. As a dedicated partner to Nonprofit Solutions, the impact was felt acutely at JMT as we worked to update our own marketing, educate our clients and explain why the changes were a good idea.
It’s important to acknowledge that there are people and companies in the marketplace that stand to gain by fomenting fear, uncertainty and doubt about the future of Nonprofit Solutions. Recognize the difference between suggestions made with ulterior motives and the facts of the situation. Things we know to be true:
- Sage Nonprofit Solutions has experienced consistent, profitable growth, even through the recent recession.
- The Sage Nonprofit organization is being kept intact, meaning that the subject matter expertise and accumulated knowledge in the organization will continue to be dedicated to serving up quality products, services and support.
- Accel-KKR, the private equity firm that purchased Nonprofit Solutions, has a strong, documented track record of investing in technology companies that are poised for significant growth.
As an independent reseller for a number of nonprofit technology vendors, we understand that the marketplace is a fluid environment. Small companies get big. Mergers & acquisitions happen. New options emerge that help to redefine the landscape. This is part of the natural evolution of the marketplace. We see this change as overwhelmingly positive and look forward to continuing our long, prosperous relationship with Nonprofit Solutions.
