A Partner's Guide to Sage Software Licensing Models: Comparing Options

Helping your clients choose the best licensing model of Sage for their business can be a complex challenge. When comparing licensing solutions, a number of questions likely come up:

  • How do I want to purchase my software?
  • Where and how do I want to use the software?
  • Is remote access important?
  • Should I invest in server software for my team?
  • Will I be able to handle the IT?

We could go on. Though considering the options can be tricky, at Swizznet we like to reframe things a bit to help Sage partners leverage the POWER OF CHOICE that is at their fingertips.

There are three main ways for your clients to consume Sage: traditional, on-premise; hosting; or a SaaS model. By understanding the strengths of each, you’ll be able to guide your clients to the best fit for their budget and requirements.

Here’s what the choices entail.

Traditional, On-Premise

iStock-1149848131 (1)

Clients with a go-it-alone mentality and strong IT capability can have full ownership of their Sage software through perpetual or subscription licensing. In this model, your clients purchase licenses for the number of users they require, and the software is installed on their desktop workstations. The IT team takes over to handle installation and management of hardware, servers, and software updates.

Who it’s for: On-premise is ideal for clients who may want significant customization, and have the internal resources to handle IT on their own. They will need to be prepared to handle software installations, maintenance, security, and industry or government regulatory compliance.

What it delivers: On-premise brings full ownership of Sage software. Clients can build their own workflows to meet business requirements, and have the right to use the product without limits.

What you need to know: With perpetual licensing, you can offer your clients the option to budget for and make a one-time investment into Sage software as a CAPEX expenditure. Or you can offer the subscription licensing as an OPEX. It is important to note, however, that the initial cash outlay isn’t the only expense. Other costs, such as IT and support, can make an appearance down the road.

Hosting: Swizznet Optimum and Flex

iStock-1076046358

An alternative to the on-premise one-time purchase model is the hosting model. Hosting takes full advantage of all the benefits of cloud computing to give your clients anytime, anywhere access to their Sage software and associated business apps via perpetual or subscription license. In many ways, hosting your desktop software in the cloud is enabling the digital transformation of companies and supporting their continued growth. A study from Deloitte found that companies using an above average number of cloud services grow 26% faster than those that use no cloud tools and are more profitable by 21% on average.

Who it’s for: Clients who are looking for greater flexibility than an on-premise solution can provide, including the ability to easily access their Sage software in the field and to collaborate with business partners from anywhere — whether at the office, their home office, or on the road. Hosting is also a good choice for clients that want services on a trusted and enterprise-level data center like Microsoft Azure, Google Cloud or Internap (INAP) and an easy to use interface.

What it delivers: Swizznet is a strategic partner for hosting Sage perpetual and subscriptions licenses, and has been working with Sage partners for years to provide exceptional client experiences. With software hosting, clients are able to leverage the full power of Sage’s business finance software, while enjoying convenient access powered by Swizznet's enterprise-grade cloud hosting and ease of access and use.

Your clients will be able to enjoy the customization of on-premise solutions to create an experience in the cloud just like what they are accustomed to on desktop. Further, Swizznet takes on the IT and security concerns so clients can focus on business, rather than managing licensing and compliance. Software hosting eliminates hardware expenses, and overall costs are predictable and billed per month.

To top it all off, Swizznet provides real-time monitoring and we are known and recognized across the industry for our 24/7/365 US-based Obsessive Support®. Not only are we always available, our team is trained on Sage software and our partnership provides access you can’t get on your own.

What you need to know: Most companies are racing to  a cloud model with a monthly or annual  subscription model. Swizznet and Sage have teamed up to provide that for you. With Swizznet, we offer you two options for your clients to get set up with hosting their perpetual or subscription license. The first is our new Swizznet Optimum price plan for Sage 100 Contractor, Sage 300 CRE, Sage 100 ERP, Sage 300 ERP or another Sage hosted application. The package includes a simplified per-user pricing model that includes all the resources most companies need to succeed in the cloud. The second option is Swizznet Flex, which allows your clients to custom build what they need in their hosting solution from the ground-up. Swizznet Flex is available for Sage 50, Sage 100 CRE, Sage 100 ERP, Sage 300 CRE, Sage 300 ERP, and Sage Estimating.

In addition, Sage and Swizznet have developed a quoting calculator that works out a simplified, monthly cost so you can give clients an estimated price. Custom demos are also available to showcase the full power of Sage workflows before the customer buys.

SaaS Model: Sage Intacct

iStock-1138295318

Sage also offers Software-as-a-Service (SaaS) solution for general contractors and real estate developers called Sage Intacct. Through SaaS tools, your clients can quickly gain access to Sage accounting software in the cloud.

Who it’s for: SaaS solutions are best for clients who lack the internal resources to support software install, maintenance, and compliance, and don’t need customized solutions that can support numerous workflows and business apps.

What it delivers: Work is accessible on the go without the need for IT teams and resources. Users have a right to access the product, and base maintenance is typically included. The vendor commits to high-level privacy and data security. In the case of Sage Intacct, this is provided by “redundant Fortune 100-class data centers” operated by Equinix and Quality Technology Services. The vendor safeguards clients’ information and applications for quick recovery in the event of disaster. Clients incur minimal business risk as liability for the product shifts to the SaaS vendor.

What you need to know: In the SaaS model, partners are able to offer Sage at an affordable price without the IT costs and requirements of a on-premise solution. It is an OPEX cost, so it may be more expensive up front, but costs are typically lower long-term. Note that though a turn-key SaaS solution has its benefits, customization may differ from on-premise or hosted opportunities.

With these three options, you can bring your clients the POWER OF CHOICE in choosing the Sage solution best-suited to their needs and support the growth and expansion of their business.

Have further questions on any of the three options? Contact your channel rep to learn more at channelsales@swizznet.com.

Power Up with Swizznet Hosting