Growth of UK software firm Sage to slow as it shifts to the cloud
CEO Steve Hare says 46% of Sage’s revenue now comes from software subscriptions, up from about 15% three or four years ago
The new boss of British software provider Sage says he will focus on subscription services by moving more products to the cloud but says this will constrain revenue growth in the short term. Steve Hare, who is now CEO at the provider of the small-business accounting and payroll software, laid out his plan after the group reported 6.8% organic revenue growth for the year ending in September. Like its competitors, Sage has been seeking to move to cloud-based subscription services from packaged software. Hare said 46% of Sage’s revenue now came from software subscriptions, up from about 15% three or four years ago, but said it needed to step up momentum. “That requires more investment in the short term, but the prize will be stronger, higher-quality, sustained revenue growth,” he said. “Cloud and emerging technologies are moving quickly and we need to invest to make sure we can stay ahead in terms of what we can offer to our customers.”
Shares in Sage, which said it would invest ...
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