Friday, May 16, 2008

What's wrong with the Sage CRM business?

There seemed to be some good news about Sage's CRM proudcts at the company's recent Insight's conference, and some nice write-ups from the gurus like Denis Pombriant and Paul Greenberg. So how come nobody is buying the products?

Take a look at this:

Now, what are you looking at?

  • This is total annual revenue for Sage's CRM business, both before and after acquisition. By Sage CRM in this case I mean the revenue from all the CRM products (ACT!, SalesLogix, Sage CRM,, not just the individual product that caries that name.

  • Interact Commerce was acquired after the end of its 2000 fiscal year. The blue bars represent the revenue performance of Interact as an independent company. Nice growth of 197% in that last year, on revenue of $107 million.

  • From the close of the acquisition in May of 2001 and through the end of Sage's FY07 (10/1/06 to 9/30/07) it had managed to build a CRM business of 66.4 million British Pounds. Using the exchange rate as of 9/30/07 that translates to about $135 million dollars.

  • Sage's CRM business got a small inorganic revenue bump from a small bit of CRM revenue gained with the acqusition of Accpac in 2004. Even including these revenues this works out to a seven year CAGR of just over 3%.

Wow! What happened?

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