Sage launches SaaS model with Rackspace

Rackspace has extended an existing European partnership with Sage to Australia that will see the company host the Sage business management software as a service.

The partnership, which has existed in Europe, the Middle East and Africa (EMEA) since 2008, was signed in Australia in April. The two companies are in the process of educating local partners and distributors on the model.

Under the agreement, Rackspace will host the service in its data centre facilities in the US, Hong Kong or EMEA.

Rackspace Asia Pacific managing director Jim Fagan said the existing partnership with Sage has been "very good".

"We've seen a lot of adoption," he said.

"We believe that there is a demand in the [Australian] marketplace for the type of applications that Sage offers to be offered as a software as a service (SaaS) versus on premise solutions," said Fagan.

Fagan said Rackspace will work directly with distributors and resellers. Distributors have the ability to resell and brand the service themselves.

"We're not replacing the on-premise product," said Fagan. "It's going to give these distributors and partners another avenue that will help their customers overcome hurdles... around CAPEX and that may be looking to a pay-as-consume model."

Hosting abroad

Fagan said that Sage Australia has tested Rackspace's facilities around the globe.

So far the companies have not come across concerns around data being hosted overseas but admitted it "absolutely" has heard concerns from Australian customers in the past, Fagan said.

"It's absolutely a road block sometimes," he said.

"Really it comes down to the industry customers are in and their comfort level. Our facilities are SAS70 compliant, as well as PCI compliant and we have Safe Harbour [classification] in Europe. We have the certifications and security in place.

"But yes, [offshore hosting] always comes up as concern and really we try to walk our customers through the security - but it still comes down to preference."

Resellers should speak to the security of the data security protocol and they should check with their industry, Fagan said.