Sage Channel Advocate Paul Johnson Exits Company

Executive VP of Sales Paul Johnson is leaving Sage Software Inc. effective immediately, the company has confirmed to The VAR Guy. The move is the latest executive change at Sage North America, which allegedly faces intense channel pressure and SaaS competition from Microsoft Dynamics CRM and NetSuite.

The VAR Guy

December 21, 2010

3 Min Read
Sage Channel Advocate Paul Johnson Exits Company

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Executive VP of Sales Paul Johnson is leaving Sage Software Inc. effective immediately, the company has confirmed to The VAR Guy. The move is the latest executive change at Sage North America, which allegedly faces intense channel pressure and SaaS competition from Microsoft Dynamics CRM and NetSuite.

In fact, NetSuite claims to have won more than 500 former Sage customers in recent months. But here’s the twist: Sage is under pressure in North America, but the company’s most recent annual results beat financial analyst expectations.

Johnson’s departure was originally reported by Accounting Today. Sage has since confirmed Johnson’s departure to The VAR Guy. Sage VP of Sales Tom Miller described Johnson’s departure in a letter to channel partners over the weekend (see complete letter in Comments area below). In the letter, Miller credited Johnson for multiple channel milestones because he:

“created the channel management team, bringing channel programs and enablement, channel marketing, distribution optimization, partner communications, and strategic alliances into a single group. This structure has helped us accelerate innovation in providing services to partners and position us as an industry leader.”

Glass Half Empty? …

Johnson’s departure comes amid multiple key North America changes at the company, some of which could potentially unnerve channel partners:

  • CEO Sue Swenson intends to retire in mid-2011.

  • Sage Business Solutions president Jodi Uecker-Rust, a Microsoft Dynamics and Great Plains veteran, left earlier this year.

  • Sage in mid-2009 suffered a setback when its top reseller, MIS Group, imploded.

Rivals smell blood in the water. NetSuite, the SaaS ERP specialist, claims to have converted more than 500 Sage customers to NetSuite SaaS in recent months, reports Enterprise Irregulars.

… Or Glass Half Full?

Still, Sage’s most recent annual results beat investors’ expectations in early December 2010, as small business customers outside of the U.S. resumed IT spending, Reuters reported.

Also, Sage North America this month unveiled Managed Cloud Servers and Staging Environments for Sage SalesLogix Cloud CRM customers. The Managed Cloud Servers let customers or Sage CRM Solutions Business Partners extend CRM functionality by enabling add-on, ISV, and custom applications in the Cloud, Sage claims.

Also, Sage has a pretty extensive channel team — from Tom Miller on down. In fact, the company put the spotlight on multiple channel leaders in a February 2010 CRN article. The channel pundits included:

  • Joseph Carroll, senior director of channel marketing for Sage Business Solutions, North America. Carroll previously worked at Valogix, Great Plains, SAP and Microsoft.

  • Robert Johnson, senior director of partner programs and readiness. He’s been with Sage more than a decade.

  • Brent Pieterick, senior director of channel distribution optimization for Sage Business Solutions, North America. He previously worked for a Microsoft Dynamics partner, Great Plains and Microsoft.

  • Mike Wingrove, senior director of sales for Canadian. He previously worked in the channel for Camilion Solutions, SAP and Epicor.

According to their LinkedIn profiles, Carroll, Johnson, Pieterick and Wingrove all remain with Sage. Also, the Sage Summit — for channel partners and customers — remains scheduled for July 10-17, 2011. Still, the timing could be ominous: Microsoft’s Worldwide Partner Conference (WPC) 2011 is scheduled for the same week.

The VAR Guy is checking in with Sage for additional comment from Miller. Accounting Today speculates that Johnson is heading to Intuit.

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