Dynamics Introspective: After Sage Intacct deal, do Microsoft ERP VARs feel the cloud pressure?

This week's major ERP market news, the acquisition of Intacct by Sage, reminds us that consolidation in the enterprise application space remains an important market dynamic.

For Sage, the addition of Intacct marks a new stage in the company's revitalization under CEO Stephen Kelly. Following two years of re-structuring and a year of smaller "bolt-on" M&A activities like the deals for Fairsail and Compass, the Intacct acquisition means the Sage makes immediate SaaS market share in North America and, in Kelly's words, improves "our ability to grow at scale" and pursue "high quality recurring revenue."

Kelly's rationale for the deal should resonate with the rest of the market. Simply put, Sage wanted in on North America's cloud application market today rather than some years from now. And, for what it's worth, Intacct appears to fit logically into the "new Sage" lineup - at least in North America - between Sage Live and X3.

Dynamics VARs brush it off

Response to the deal by Dynamics ERP partners has tended toward the expected derision: typical Sage, can't innovate or win with their own solutions, so they buy their way into the market. Where's the vision? Where's the technological leadership? If you're an ERP purist, perhaps it's hard to see it any other way. But the reality is that Sage is doing what their CEO believes gives them the best position for the future - owning ...