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Software Businesses

The post was from the closer look dept.

British businesses have complained about the tactics used by Sage, the UK's largest listed tech company, to push them into accepting more expensive subscription services or have access to their existing accounting software packages switched off. From a report: Small companies across the UK rely on the FTSE 100 company's Sage50 software for book-keeping, sending invoices, processing orders and helping with tax payments. But in recent months, Sage has pushed customers who had been sold single-payment, long-term licences to the software on to monthly subscriptions that work out to be more expensive over the long run, by saying they would turn off their licences on security grounds, despite having no specific grounds to do so in their terms and conditions.

Kate Barton, owner of model train company Reeves 2000, last upgraded her package in January of this year, expecting it to last 15 years. Barton will have to pay a monthly amount on a subscription model. She said that this is a bigger picture of how things are going, where we're forced on to a subscription for everything. It's terrifying. The focus on subscription software is part of a plan to achieve more regular recurring revenues, which would make it less vulnerable to the income that can occur from an overreliance on new customers making one-off purchases.

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