It’s almost been a year since the release of Sage 100c, Sage’s new “connected, collaborative, and customer-focused” subscription software, and 2017 saw the end of the perpetual Sage 100 license for new customers. It’s been a confusing year for everyone involved, but now that the dust is settling, here’s what we know.At its core, Sage 100c is the same business management platform Sage has offered for decades, but with an enhanced, “modernized” web-style user interface (UI) with easier navigation and personalization tools. Sage 100c is installed on-premise or hosted, just like Sage 100. The new UI only gives it the feel of a browser-based system, however, in reality the underlying technology is the same as it has been.
Currently, there are two main differences between Sage 100 and Sage 100c: The updated UI and how Sage 100c is priced and packaged.
Sage 100c is available by per-user subscription only, with monthly, 1-year, and 3-year payment options. Unlike your existing Sage 100 software (which allows you to continue using the software even if you do not renew your Business Care Plan), if you allow your Sage 100c subscription to expire, it will become read-only, providing historical data only. Rather than having your annual renewal through your reseller, your subscription payments are processed automatically by Sage via ACH or Credit Card.
Sage 100c comes in prepackaged bundles: Essentials, Advanced, and Complete. Simply, the Essentials bundle includes the core financial modules like GL, AR, AP, and Bank Reconciliation. The Advanced bundle adds Purchasing, Sales, and Inventory. The Complete bundle builds on Essentials and Advanced by including RMA, Bar Code, and Bill of Materials. Certain modules can be added "a la carte", such as Job Costing, MRP, and Work Order, among others.
Because Sage 100c is a new option, customers can expect to pay an average of 15% over their existing Sage Business Care renewal to "upgrade" to Sage 100c. However, to promote the move to Sage 100c, Sage is offering current on-plan customers the ability to migrate for no more than your current Sage Business Care plan price. Beware though: in many cases the subsequent subscription costs may be dramatically higher.
Sage is "price protecting" migrated customers for now, which means if customers migrate to 100c and receive a discount, they'll be looking at a 10% increase to their subscription cost at the annual renewal. It's unclear if Sage will maintain a 10% increase until customers gradually catch up to actual subscription prices or if (and when) the 10% protection will end.
Yeah? You've heard all of this already? Well here's what you may not know:
Adding users might cost you a bundle in Sage 100c - While Sage has been waiving (so far) the "initial set up fees" for customers migrating to Sage 100c from Sage 100 at their current user level, when you decide you need to add additional users there is an up-front "one-time set up" fee that starts at $500 per user. And that doesn't include the actual subscription cost.
Not all Sage 100 features have been "modernized" to work with Sage 100c - Though the functionality may be the same as in Sage 100, many integrated products and enhancements haven't quite caught up to the new modern UI and may not be compatible with 100c.
Some of the "bonus" features in 100c are pretty limited - Sage is including a few free add-ons in the Sage 100c packages (and promoting their now-standard inclusion), such as Inventory Advisor and Multi-Bin, but they're really just sample versions of the products. To get any real functionality out of these products, customers must upgrade to (and purchase) a full version.
Sage 100c sounds like a new product, but it's not really... - While it's being marketed as a new ERP solution for businesses, there hasn't been any real change to the underlying software. To use Sue's metaphor, Sage has put a fresh coat of paint on the house that is Sage 100 without making any improvements to the building, and they're now telling customers that if they want that fresh paint, they have to rent their home (and there is no rent control).
Some customers may save by switching to Sage 100c - For some companies, moving to Sage 100c could save you money. Customers with a handful of users (or less) using only the Core modules (AP, AR, GL & Bank Rec) may find that the Sage 100c Subscription cost is less than the annual Sage 100 Business Care Plan. We have had a few customers save annually by moving to 100c, but only after carefully weighing the value of moving to a subscription plan - They fully understand if they don't continue to pay every year, they will lose the ability to enter new information into Sage 100c and they understand the software will be read-only for historical purposes. If you think your company may be one of these, let us know and we can help answer any additional questions you may have.