Sage in spat with Kashflow

(By Richard Holway 4th March 09) Yesterday, with my Chairman of the Prince’s Trust Technology Leadership Group hat on, I reported on how the Trust had helped Duane Jackson form Kashflow. Today the headlines are about a spat between Kashflow and Sage.

I’ve reproduced below, in full, the piece from the City Diary in the Times today Sage takes selective approach as I, and I suspect many other readers, know all the parties mentioned.

Perhaps I should point out that Lord Young was a member of the Prince’s Trust Council responsible for private sector development at the time the Trust helped Duane. Lord Young ‘put his money where his mouth is’ and should be applauded for that. To complicate matters, Sage has been a great supporter of the Trust for many years (and still is). I’ve told Duane on many occasions to concentrate on “accentuating the positives” of his own product rather than knocking the competition.

Sage takes selective approach - City Diary - The Times 4th March 09
Sage Group, the business software provider, has declared war on KashFlow, a smaller rival, over disobliging remarks on the latter's website.

KashFlow, which is chaired by Lord Young of Graffham, the former Tory trade secretary, provides online accountancy services to small businesses and publishes on its website comparisons between its charges and those of its larger rivals.

Sage has taken the company to the trading standards authorities, claiming that these comparisons are “highly selective”, having asked politely to have them changed. One other rival has also complained. KashFlow was founded by Duane Jackson, a colourful character who was once done in the United States for drugs and money-laundering offences but is now entirely reformed. Lord Young owns 40 per cent of the business.

“We said to trading standards we couldn't see anything wrong,” Mr Jackson says. “They [Sage] started throwing their weight around. We didn't think it was very fair.”

The Sage camp has not always been so negative. Last year Michael Jackson, its former chairman, looked at buying KashFlow.