Kashflow and Sage
Richard Holway posted this morning about Kashflow (a small but growing UK-based software company that offers accounting software via software as a service).
In Richard’s post he mentions that it seems that Michael Jackson (former Chairman of Sage) had made an offer for the Kashflow business of £1m, which was rejected by Kashflow’s founder Duane Jackson.
According to Richard, Jackson made the offer with a view to using the Kashflow product to act as the “heart” of a new SaaS venture he was planning.
Well done Duane for saying no to the £1m for 100%… If I were him I wouldn’t give the company up at this point in time, but I’d be very keen to find a way to sell Michael Jackson some kind of stake since he’d made a very city-friendly supporter and has a wealth of experience that money cannot buy.
I’m only posting this, because it reminded me of a conversation I’ve had several times with Holway – I’ve always been critical of what I perceive to be a deep lack of innovation at Sage, and have given Richard a hard time in the past over his positive opinion of the company. Richard only needs to point to the company’s long-term financial performance to justify his view of course, but I believe that Sage will be dead in 5 years unless it can develop a completely new platform around SaaS – which is something you don’t do by buying lots of companies and cobbling them together.
Sage could actually be behind Kashflow in terms of its ability to deliver a user (and accountant) friendly product that is delivered as a service.
Yes, SMB take-up of SaaS has been tentative – but there’s now doubt that the technical, legal and emotional barriers are falling away, and there is absolutely no guarantee that the biggest share of the market will belong to today’s incumbants.
Sage needs to invent Sage 2.0… and learn from some of the minnows that are emerging.
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July 22nd, 2008 at 10:46 am
From following the links on Richards post it seems the offer ws actually £2m or more. But I agree, it’s not a business I would let go at this stage if I were him.
I’ve met Duane Jackson at networking events and he seems sharp enough. I’m sure he would have considered the benefits the other Jackson brings to the table.
He already has the city friendly Lord Young on his board. Perhaps he consideed it to be a matter of too many cooks?
October 14th, 2008 at 6:15 pm
[...] – bookmarked by 5 members originally found by mimiqiao on 2008-09-27 Kashflow and Sage http://www.thinkovation.com/blog/index.php/2008/07/22/kashflow-and-sage/ – bookmarked by 5 members [...]
March 19th, 2009 at 6:43 pm
There are a number of web based SAAS accounting products now appearing including http://www.clearbooks.co.uk.