In a recent fireside chat, Laura Atkins sat down with industry veterans Walt Goodfield and David Cieslak as they shared their experiences and insights on what's next for Sage 500. Read what Walt and David had to say about the necessity to transition off of Sage 500, the journey to finding the right ERP system and the benefits of Sage's native cloud product - Sage Intacct.
Laura Atkins: Okay, let's set the stage here. Over ten years ago, Sage Executives delivered end-of-life statements for 3 Sage portfolio products including Sage Pro, Sage PFW, and Sage 500 ERP. What’s the current state of those products and clients?
Walt Goodfield: In 2012, Sage announced the sunsetting of all three of these products. Then in the spring of 2014, 2 of those products were actually sunsetted-Sage Pro and Sage PFW. Now fast forward 10 years later and we're still supporting Sage 500, but a couple of things have happened in the last 2 years to make note of.
We really want Sage 500 customers to understand the product's history and its dependence on Microsoft's development tools, especially Visual Basic 6 (VB6), which was released in 1991 and is integral to Sage 500. The software operates solely on the Microsoft SQL Server environment. Microsoft recently announced the end of life for Microsoft Great Plains, with support ending in September 2029 and security updates until April 2031. This is significant because it suggests that Microsoft may soon phase out support for VB6, as they've begun creating migration paths for their customers. Microsoft's "it just works" policy implies that once they end VB6 support, customers will have five years to transition.
Laura Atkins: So, given that you know this is clearly winding down—it’s still working, but facing the end of its life. What is RKL doing? Are we actively promoting a kind of “what's next?” planning and what do those conversations look like with our clients?
David Cieslak: Certainly Laura, reiterating Walt's points, Sage 500 users who are well-acquainted with the product may find the idea of transitioning to a new system unsettling. Despite its familiarity and integration, the software is no longer being enhanced, and many users are also contending with aging internal hardware, a challenge amplified by the remote work shift during COVID-19. It's crucial now to be proactive in decision-making about the future of our software solutions.
Turning to alternatives, we're discussing with our customers the mature, cloud-native Sage Intacct solution. Unlike repurposed legacy systems, Intacct has been a cloud solution from inception, targeting common organizational challenges like reporting and integration. As we consider our specific business needs, Sage Intacct shows promise across various sectors, including general business, software/SaaS, non-profits, professional services, healthcare, hospitality, and real estate, while manufacturing and distribution are still evolving areas for the platform. It's important for businesses in these industries to evaluate Sage Intacct's fit and be proactive in their software strategy.
Laura Atkins: It sounds like there's a really good opportunity to move to a better-fit platform. but I understand that that moving can be difficult. It can be a bit of a trial for people, a little scary. So how much time do clients have to really address this issue?
Walt Goodfield: Really, there’s no one-size-fits-all answer. There's no immediate risk of Sage 500 ceasing to function, but it's unwise to rely on outdated software for critical business operations. Customers using unsupported versions of Sage 500 are vulnerable to security risks, potentially compounded by outdated SQL Servers, operating systems, and hardware. It's vital for Sage 500 users to collaborate with our team to create a proactive transition plan. Delaying may result in rushed decisions and project risks. It's important to start planning now to avoid being pressured by future support announcements.
Laura Atkins: So for both of you, what advice would you give our current Sage 500 customers that are considering an upgrade or replacement option?
David Cieslak: While organizations are often comfortable with mature platforms like Sage 500, my advice would be to recognize the benefits of modern solutions like Sage Intacct. Newer systems offer capabilities that Sage 500 lacks or requires workarounds to achieve. With ongoing investments in updates and a variety of marketplace add-ons, Sage Intacct eliminates the need for many workarounds and provides more seamless integration with business applications.
Moreover, the shift to modern solutions like Sage Intacct represents a mindset change from merely being compliance-focused to gaining real-time, actionable insights that can inform strategic decisions. Organizations should not just aim to replicate Sage 500's functionalities but should reimagine their expectations from a financial accounting system to fully leverage the advantages of next-generation solutions.
Walt Goodfield: I would only like to add that when customers consider upgrading their legacy systems, they should understand that upgrades are temporary fixes that delay addressing the core issues, merely "kicking the can down the road." Upgrades might be cheaper and easier in the short term, but they miss out on the benefits of modern technology, such as automation, workflows, and multi-tenant deployments. In contrast, replacing an ERP system is more costly and disruptive, with a greater demand for project management and implementation efforts. However, a replacement aligns with a long-term strategy, ensuring the business stays current, adds value, and leverages technology to optimize staff productivity for the next 7 to 10 years.
Laura Atkins: So, assuming that we want to move to Sage Intacct. What does that customer journey look like with RKL eSolutions? And what would you suggest are the next steps for these clients?
Walt Goodfield: I’ll start off by saying that the sales journey begins with the customer realizing the need for a system change. This typically involves internal self-discovery, assessing likes, dislikes, gaps, and envisioning an ideal solution. Customers usually research options, potentially engaging with our content and recommendations. Following self-evaluation, they embark on an evaluation plan, a structured customer journey that includes discovery, scoping, solution presentations, reference checks, and defining the scope with a statement of work. We offer guidance through this process, which remains similar even if they consider solutions from competitors. Once customers decide on a product, David do you want to fill in the gaps?
David Cieslak: Yes -we have a customer journey document that outlines the entire transition process from assessing current needs to post-migration considerations. It addresses common questions about staffing, timing, project management, and investment. Recognizing that change is difficult, we emphasize structured change management for a successful outcome. Ideally, we time the transition to avoid busy periods and assess whether the internal team is prepared. We advocate for involving the entire team to get everyone comfortable with the system and avoid a top-down approach.
If you were to decide to migrate to Sage Intacct today, I would say the critical aspect to evaluate would be what historical data to migrate. We tend to focus on current and possibly prior year records for comparative reporting while deciding if older data is worth the conversion cost. The typical transition timeline ranges from 90 to 120 days, influenced by factors such as staffing, data history, and integrations. With a structured approach, we're confident in achieving a successful transition.
Laura Atkins: Yeah, it sounds like there's a lot you could start doing now to get ready for that decision down the road. So, from the other side, what is the team at RKL doing to prepare ourselves for this client-based transition?
Walt Goodfield: In the past 5-7 years, we've been educating our clients about the value of Sage products and tailored our expertise to vertical and micro-vertical industries such as non-profits, franchises, finance, construction, and real estate. We’ve learned to pinpoint when it's appropriate to transition to a more modern ERP system and we've also cross-trained our team, including transitioning consultants with deep product knowledge and industry expertise, to support clients moving to Sage Intacct and ensure a smooth transition process.
David Cieslak: Adding to Walt's points, Sage Intacct isn't just a potential fit for various verticals and micro-verticals; it's an exceptional fit. Our experience shows that Intacct natively addresses the specific needs of diverse organizations. Its design goes beyond hoping for compatibility; it includes features like transaction definitions that allow customization to mirror an organization's unique document flow and terminology. This flexibility ensures that Sage Intacct isn't a generic solution but one that can be precisely tailored to meet the exact needs of each vertical.
Walt Goodfield: That’s a great point, David. While Sage's industry focus in the past was less intentional, with Sage 100 not being specifically designed for certain industries, Sage has now moved towards more targeted verticalization. Sage Intacct may not suit every sector, such as food and beverage, which is better served by Sage X3 and its specialized process manufacturing capabilities. This ability to match the right Sage product with the right customer based on industry-specific needs is what distinguishes our expertise and adds value for our clients.
Laura Atkins: So we've been talking a lot about, you know, industry and where Sage Intacct is a good fit. Obviously, clients are going to need to do their due diligence. Are there comparable solutions that clients should shortlist, or are there specific factors? Maybe in a product that clients should be paying close attention to as they do their research?
David Cieslak: Yes- ensuring a good fit for an ERP solution is crucial. We're aware of competitors like Oracle NetSuite, Microsoft Dynamics 365, and Acumatica, and we honestly assess strengths and weaknesses compared to Sage Intacct. We perform a thorough discovery process to understand a company's unique challenges and ideal solution requirements, as well as their industry-specific needs. Transparency about product capabilities is key, as we aim for exceptionally satisfied customers, not just satisfied ones. If competitors offer a better solution for a client's specific needs, we're open about it because recommending an ill-fitting solution serves no one.
Walt Goodfield: I would agree David; in the last twenty years, software publishers have become more deliberate in targeting industry-specific needs. A common mistake among customers is to default to big names like Sage, Oracle NetSuite, and Acumatica without considering which solutions best fit their industry. It's more beneficial to start with the industry focus and then choose a publisher, as those focused on sectors create features that provide significant value and impact for their specific customer base.
Laura Atkins: We're approaching the end of our time here, so I want to wrap up by asking if there's one big takeaway, one to two for each of you, that clients can walk away with today. What would that be?
Walt Goodfield: The most important advice I would give to customers on legacy systems considering modern technology is to start planning now. Don't delay in selecting a solution or beginning implementation, but do have a strategy in place. Planning, gathering requirements, and conducting research are time-consuming steps. Additionally, during solution presentations, we recommend that customers provide sample documents for a proof of concept to ensure the solution fits their specific business needs.
David Cieslak: I would say proof of concept is essential to ensure comfort with a potential new system and serves as a test bed for further discussion and idea generation. It's important not to settle for generic presentations but to request a proof of concept that tests and validates the system against your organization's unique requirements. This is key not just for the selling process but primarily for organizational validation.
Laura Atkins: That's why it's so important to start mapping your processes and paying attention to what you're doing in your business now so that you can identify those things that you'll need to see. Well, that about does it for our time today. Thank you, Walt and David, for sitting down with us to talk all things migration to Sage Intacct!