Sage UK have announced a price increase to all Sage 50c Subscriptions from April 1st, 2024.
What are the new prices for Sage 50c?
Sage announced the intended increase in October 2023 and have now published their prices. As always – Qi Ltd charge the same as Sage UK for Sage50c licensing. The key benefit of licensing through Qi Ltd is that the mandatory support element of the licence fee you pay, includes support with Qi Ltd rather than Sage UK.
When will the take effect?
Example
Your renewal date is November 2024. The new price will apply from this renewal date in 2024.
Your renewal date is March 2024. The new price will apply from renewal in 2025.
The uplift will be automatically applied to new customers or customers still using perpetual licences that are moving to subscription for the first time. (Although how these older versions are still in use, is a mystery to me?)
Is Sage50c still value for you and does it meet your needs?
Cloud
There are a host of competitors who offer a wholly cloud and browser based (SaaS) solution. Sage 50c is not a cloud-based solution, it merely offers some remote cloud services but requires hosting on a server like device. Think QuickBooks, Xero for example – these are browser based.
Fun Fact?
Did you know that Sage50c is NOT tested by Sage for installation on a Hyper-V server?
Sage are within their rights to draw a line under any support they will offer you or their business partners if there are performance issues.
Browser Based Software
Working on a browser-based application ensures you can log in to your system from any internet capable device with an internet connection. Sage 50 is NOT browser based.
Effective Inventory, HR, CRM, full BOM and Assembly Orders
Sage 50c Accounts does NOT offer the above as part of its core functionality. It is after all an accounts package and partners with other developers for any manufacturing capability. Think Cim50 for example, which replaced Sage Manufacturing when Sage pulled out of the MRP for Sage 50 space. (Sage 200 also requires a 3rd party application to deliver MRP). Cim services offer both Cim50 and Cim200.
Many of Sage UK’s competitors do also not offer this functionality as part of their core product.
Dynamics 365 Business Central Essentials (entry level)
Sage 50c Accounts does NOT offer the above. It is after all and accounts package and partners with other developers for any manufacturing capability. Think Cim50 for example, which replaced Sage Manufacturing when Sage pulled out of the MRP for Sage 50 market.
Many of Sage UK’s competitors do also not offer this functionality as part of their core product.
Dynamics 365 Business Central Essentials (entry level)
Sage UK price their products in user bands: single user, 2 – 5 users and so on. This can be cost effective if you are using the maximum number of concurrent users within a pricing band.
However
If you are using a two-user instance of Sage 50c Accounts Professional, which you must host on a server and likely interface with other 3rd party solutions for inventory, manufacturing, and CRM then your annual costs will be LOWER using Business Central Essentials at £1728 plus VAT a year, including support with Qi and software updates twice a year.
(Working on the premise that Microsoft does not put out a price increase!)
Microsoft Dynamics 365 Business Central Essentials will provide:
Financial Management
- General Ledger
- Accounts Schedules
- Cash Management
- Multiple Currencies
- Receivables (Sales Ledger)
- Sales Invoicing
- Payables (Purchase Ledger)
- Purchase Invoicing
Supply Chain Management –
- Sales Order Management
- Sales Return Order Management
- Purchase Order Management
- Purchase Return Order Management
- Salespeople/Purchasers
- Inventory Management
- Assembly Orders
- Stock Replenishment
Contact Management –
- Contacts
- Interactions
- Sales Opportunities
- Tasks
- Campaigns
Complex Manufacturing
The next licensing level up from Essentials is Premium which delivers functionality for complex manufacturers – and costs slightly more per user.
For comparison, a two user Microsoft Dynamics 365 Business Central Premium licence would cost £2466 plus VAT a year including support with Qi. But remember – you get a full ERP system for that!
Business Central also has multiple location, multiple company, and multiple currency capabilities as standard.
Dynamics Business Central offers Team (light) users for those that need to view and report on data rather than process it. These users are a fraction of the cost of a full user at £99 plus VAT a year.
Business Central is also available with a Device CAL which supports apps such as bar code data collection. A Device CAL can be accessed by multiple users to scan stock movement, operation times and WIP, typically working in a production area.
What is YOUR business case for moving away from Sage 50c?
If you are using Sage 50c + interfacing MRP + CRM, hosted on a server, with all the additional costs that entails, then looking at your overall costs in the round will likely still make an application like Business Central look cost effective.
Example
An 8 user Business Central Essentials licence will cost £6912 plus VAT a year, including support and software upgrades that appear in your system twice a year rather than needing to be upgraded.
The new Sage 50 costs will be £2249.76 alone.
Consider:
- The cost of other interfacing software
- The cost of maintaining your server (support and backups, security etc)
- The cost of replacing your server in due course
- The benefit of having a central solution – a single point of truth
- The benefit of accessing REAL TIME data across the entire business
- The benefits of your central solution interacting with your Office 365 licences
- The ease of achieving Cyber Essentials with a modern solution
What is the cost of moving away from Sage 50?
What does is cost to move from Sage50c Accounts to Business Central? Projects with Qi start from 10K and take as little as 4 weeks from start to finish. Projects include full data migration including history, training, document set up.
Should you call ‘Time’ on Sage 50c accounts?
There is no doubt that Sage 50 has a special place in the hearts of many business owners.
The uptake of Sage accounting software in the year 1999 – 2000 was legendary. There is still a place for Sage 50c in businesses in the UK, but it does have its limitations.
Sage UK states:
We have taken this decision to increase the Sage 50 RRP due to business costs increasing and our continued desire to invest in the Sage 50 product franchise. This will provide us with the ability to continue to enhance our products to strengthen and support businesses and remain up to date with all legislation changes.
Sage does not comment on restructuring the architecture of Sage 50 to make it Cloud capable or 64-bit ODBC capable to enable it to be classed as ‘modern’ software when compared to its growing wealth of competitors.
Thought for the Day
The cost of any subscription will rise from time to time. The question is whether there is any added value for you in paying more? IT Infrastructure costs need to be reviewed in their entirety: software, hardware, security, suitability and not in silos.
Contact Qi if you want to have an initial discussion