Reflective of how Sage ERP is doing in the market, the top Sage Partner goes out of business due to its bad financial state of affairs.
, Dallas-based MIS Group, formally Management Information Services Inc., suddenly ceased all business operations Monday, leaving a message on its Web site blaming the poor economy, tight credit and other "market circumstances" for its demise.
"We were not aware that they were going to be ceasing their operations on July 6," said Dennis Frahmann, Sage vice president of marketing, when asked in an interview whether the vendor had any warning MIS Group would be closing its doors. He acknowledged Sage had "some insight" into the state of MIS Group's finances, but declined to say more.
Makes me wonder - if this could happen to Sage's largest partner, what about the many many other partners? (And their customers that have bought Sage ERP or plan to buy!)
by Ignify -
This ChannelWeb article () gives some interesting detail: "Johnson (a Sage VP), provided more insight into what happened at MIS Group. The company was highly leveraged, having made a number of acquisitions, and was operating a capital-intensive business that included hardware, software and services. Sage had been aware for some time that MIS Group was struggling and had been working with the company to help with its cash flow problems. But MIS Group shut down on Monday, July 6, and Johnson said Sage only became aware of its plans the evening before."
There may have been a time when a strategy for success may have included "market share" and growth at all costs. If those costs are financed by acquiring large debt, MIS is an example of what may occur. In this economy companies that have acquired large debt to finance operations are those that may not survive. We see that in the news every day. Rapid growth is seductive, sustained moderate growth due to market knowledge, professional ethics, and high quality service is sustainable. Even in todays economy.
I was shocked to hear this news also. I read it about it from Jason Carter's (from ) posting today. Jason made an interesting comment, "Revenue is Vanity, Profits are Sanity and Cash is King. Apparently the lenders just refused to keep funding MIS Group. The lesson....right now size and scale don't matter, access to cash and credit does. Is your balance sheet healthy enough to ride out the economic storm?"
Something that is good for all of us to consider these days!
This is truly bad news for the hundreds of customers that I am sure rely on the MIS Group. The good news is that there is a great promotion from Microsoft GP at this time that can replace the MAS90/200 product with a 75% savings; 50% off software and a 25% rebate off of services.
CIS has been a Sage PFW reseller for many years, but chose to represent Dynamics GP rather than the MAS products. We are located in Dallas/Fort Worth and would be happy to assist any of the MIS customers with a move to Dynamics GP.