Guide to your Sage Enterprise Management licensing options
There are a number of different ways you can deploy Sage Enterprise Management, which affects your software licence and costs. This post outlines your options.
It’s worth mentioning at the start of this post that we are an award-winning Sage Platinum Partner. If you choose to work with us as your implementation partner, we can help you navigate licensing options and communicate on your behalf with Sage.
However, for the purposes of your own planning and research, we’ve put together this guide to help you understand how Sage makes its software available and how the different options affect the potential costs of licensing.
Four factors that influence your Sage Enterprise Management licence
These are the four key factors that will affect licensing and associated costs of your Sage Enterprise Management software:
- Mode of deployment
- Type of functionality
- Number and type/s of users
- Need for extra features.
1) Mode of deployment
This choice typically comes down to on-premise vs cloud.
A cloud-based version of Sage Enterprise Management means you pay a subscription (either monthly or annually) and your data is managed by Sage in the cloud—which reduces your IT management risk and costs. Updates and support are provided by Sage and you can easily apply additional functionality or add-ons within the Sage Business Cloud.
An on-premise installation involves paying for a perpetual licence, which means you own the software, and you’re responsible for running it on your own infrastructure. That comes with the cost and effort of managing your own server/s. A perpetual licence requires a much larger up-front investment than a subscription model.
2) Type of functionality
There are three tiers of standard ‘packages’ available depending on the functionality you need:
- Accounting – If you’re introducing Sage Enterprise Management primarily for advanced financial management and consolidated reporting across a complex business environment such as multiple ABNs, branches or subsidiaries in multiple countries, and multi-currency management.
- Distribution – In addition to complex finance functionality, your mid-market company has complicated inventory, warehousing and logistics requirements that extend from purchasing through to sales and customer support.
- Manufacturing – When you need high-level finance and distribution capabilities, plus manufacturing-specific features including the Sage Enterprise Management Production Scheduler, project management and more.
Some re-sellers may provide additional options designed for particular industry verticals. In any case, the breadth of functionality included will affect your licensing fees.
3) Number and type of users
Sage licenses its software using a concurrent user model. Put simply, you pay for a specific number of logins that can be used by multiple employees, rather than a dedicated login/account for each individual user.
A concurrent user model is more cost-effective because you only pay for the level of usage that’s required across your whole workforce: so you can have fewer licences.
For instance, you might have three finance team members that complete tasks within Sage Enterprise Management, but they log on at different times of the day or month—meaning that only one user licence is required to ensure they can all use the system.
Of course, different users across your business have different needs when it comes to accessing functionality or being able to modify the system. You can define and customise user types to create the optimal mix of different user licences across your business.
An example of the user types you might need include:
- Admin or ‘power’ users: logins for employees with the authority to set-up and administer the system, and make high-level changes and customisations within the system.
- Operational users: for users that only require the functionality relevant to their department or role in your workflow or supply chain. For example, a user that can manage all distribution tasks, but no finance functionality.
- Transactional or ‘light’ users: some employees will only ever need to be able to view basic data, or create simple documents for approval by other users in the system.
Keep in mind that the greater the functionality a user has access to, the more expensive that user licence is likely to be.
4) Do you need extra features?
A prime example of additional features and costs that could arise is if you have branches or subsidiaries located in multiple countries. Sage makes it easy to manage tax and reporting obligations in your overseas operations with a selection of ‘legislation packs’ that can be purchased. Similarly, a diverse range of ‘language packs’ can be added to your licence, and applied to enable non-English-speaking employees to use Sage Enterprise Management. These packs will incur a flat fee (i.e., you don’t pay per user licence).
Additional licensing considerations
You may be able to achieve significant savings (and peace of mind) if you commit to a longer term in your software licence contract, locking in a price for three or five years.
If you choose to deploy your software in the cloud, you have greater flexibility to scale your ERP solution as you increase your number of employees, extend your business scope, or expand to new locations or countries.
When you work with a reliable and knowledgeable implementation partner like us, you’ll have a consultant in your corner that will help you manage your ongoing licensing needs—facilitating the addition of new functionality, features or users as needed.
Want to take the next step in exploring Sage Enterprise Management for your business? Ask us anything: call 1300 045 046 or email firstname.lastname@example.org.
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