Sage X3 is Sage’s ERP product for manufacturing and distribution companies. It is licensed under three agreements in the United States and Canada: an on-premise subscription agreement, an on-premise perpetual licence agreement and a SaaS subscription agreement, each made with Sage Software, Inc. (or Sage Software Canada Ltd. for Canadian customers).[1][2][3] UK customers sign matching agreements with Sage (UK) Ltd.[4][5] Two layers decide a Sage X3 licence position: the contract counts named Users and modules, and the software enforces a signed license file that holds badge quantities.
The US agreements were last updated on 2026-08-18. Both on-premise versions grant a limited, non-exclusive, non-sublicensable licence for internal business purposes, within the scope of use in the Order and the Documentation, in object code only, and, unless the Order says otherwise, on an Approved Environment at one Installation Site.[1][2] The subscription licence lasts for the Subscription Term; the perpetual agreement “shall continue until terminated”.[2]
Editions
| Model | Agreement | Fees | Term |
|---|---|---|---|
| On-premise subscription | Sage X3 Subscription Agreement | Subscription Fees for User Subscriptions and modules, invoiced at the start and before each anniversary | Initial Subscription Term on the Order, then 12-month Renewal Terms |
| On-premise perpetual | Sage X3 Perpetual License Agreement | One-time License Fees plus annual Maintenance and Customer Support Fees | Until terminated |
| SaaS | Sage X3 SaaS Subscription Agreement | Subscription Fees for User Subscriptions | Initial Subscription Term, then 12-month Renewal Terms (60 days non-renewal notice) |
The table is drawn from the agreements.[1][2][3] Sage’s supplemental terms say that a customer with a perpetual Sage X3 licence who also subscribes to the Automated Test Platform (ATP) holds that ATP subscription under the on-premise subscription agreement.[6]
Functional scope is sold as modules and, in the software, as badges. For version 12 the standard policy file defines the badges ERPDEV (Developer), ERPDIS (Operation User - Distribution), ERPFIN (Operation User - Finance), ERPFULL (Full User), ERPMAN (Operation User - Manufacturing) and ERPTRAN (Transactional User).[7]
Metrics
- Sage X3 User: “a named human authorized by you to use the Software and the Documentation, for whom you have purchased a subscription” (a “licence” in the perpetual agreement) “and who has been supplied with user credentials”.[1][2] The subscription agreement counts these as User Subscriptions.
- Badge: “a code that is linked with the license management”, a resource with a stock “which is consumed by users when using the functions of Sage X3”.[7]
Counting / floors
Users
The number of Users allowed to access and use the Software must not exceed the number of User Subscriptions (or, for perpetual licences, Users) purchased, and users must keep their IDs and passwords confidential.[1][2] The 2026 US agreements also forbid sharing human user credentials with a third party, a third-party system or an AI system acting for a user without Sage’s written authorisation. Sage may issue separate credentials for a single AI system.[2] An integration or agent that logs in with a person’s credentials needs that authorisation. Catalog proof: Sage X3 Users may not exceed the User Subscriptions purchased; Sage X3 user credentials may not be shared with AI systems without authorisation.
Affiliates
The customer may process an Affiliate’s data for group or non-consolidated reports. Staff of an Affiliate may use the Software for the customer only if their licences have been paid for, the customer keeps an accurate list of those Affiliates and gives it to Sage on request, and changes to the list are notified promptly.[2][4] Catalog proof: Sage X3 Affiliate users must be paid for and listed.
Badges and roles
Badge quantities are set in a license file, which is always tied to a policy file. A standard license file might, for example, grant 3 ERPDEV, 10 ERPDIS, 12 ERPFIN and 3 ERPFULL; any badge not listed has a quantity of zero.[7] The administrator links roles to badges. A user can connect with only one role at a time, and selecting a role “consumes a quantity of 1 for every badge associated to the role”. If any of those badges has no stock left, the role cannot be selected; changing role releases the badges of the previous role.[7]
Role design therefore drives badge consumption. Sage’s own example notes that a role linked to both ERPDIS and ERPFULL wastes a badge, because ERPFULL already covers the distribution functions.[7] Partners that supply vertical solutions can add their own policy and license files with vertical badges.[7] Catalog proof: Sage X3 badges are consumed per role.
Named and concurrent licences
A Sage X3 license can be named or concurrent. With a concurrent license the user takes a badge “during the time of connection”; with a named license the badge is taken when the role is assigned to the user. When no badge is available, the connection (concurrent) or the role assignment (named) is refused.[8] The contracts define the User as a named human, so a concurrent badge pool in the software does not replace the contractual count of named Users. Catalog proof: Sage X3 badges are taken at connection (concurrent) or at role assignment (named).
License files
Most of the program code is encrypted, so “a license is necessary to start the application”. Licenses and policy files are digitally signed, and a license file without its policy file is invalid. The first license can be supplied at installation, or copied in as license.json; later licenses are uploaded on the license administration page.[9] The license file records the user counts by connection type, functional limits, a unique license number, the partner and the customer, and optional validity dates; without dates the license is permanent. A text of type DEMONSTRATION LICENCE means the license may not be used in production, even temporarily.[10] Catalog proof: Sage X3 needs a valid signed license file to run.
Changing quantities
Under the subscription agreement, added User Subscriptions or modules are paid pro rata for the rest of the term at the then-current price list. Reductions “may only” take effect from the next Renewal Term.[1] Under the perpetual agreement, added Users or modules are charged from the date they are made available. A reduction earns no refund or credit of License Fees, but Maintenance and Customer Support Fees are adjusted at the next renewal.[2] Catalog proof: Sage X3 subscription reductions take effect only at renewal.
Term and renewal
An X3 subscription renews automatically for successive 12-month Renewal Terms unless either party gives notice of non-renewal at least 60 days before the end of a term. A customer who misses the deadline “shall remain liable for the Subscription Fees for the remainder of the following Renewal Term”.[1] The UK subscription agreement has the same 60-day rule and fees payable in pounds sterling.[4] Sage may raise Subscription Fees at the start of each Renewal Term on reasonable prior written notice.[1] On expiry or termination of an on-premise agreement, the customer must uninstall the Software, including all copies, within ten days.[4] Catalog proof: Sage X3 subscriptions renew for 12 months unless 60 days notice is given.
Audit and unlicensed use
Sage or its designated auditors may audit use, with access to every premises where the Software is installed or used, including a disaster recovery site, and to the computer equipment there. Audits are at Sage’s expense, with reasonable prior notice where possible. Underpayments are invoiced at the current price list and must be paid within ten days.[2] A separate clause on “Unlicensed Subscriptions” covers additional volume, modules or subscriptions found that are not licensed. They are billed, and the fees “shall be backdated to the earlier of: (i) the date of your last renewal Order; and (ii) the date for the most recent instance of usage of the items”.[2][1] Fees more than 30 days overdue let Sage accelerate all unpaid fees, suspend maintenance and support, or require the Software to be uninstalled within ten days.[2] Catalog proof: Sage may audit Sage X3 installations on site; Unlicensed Sage X3 use is billed and backdated.
Virtualization & partitioning
The agreements do not use a processor, core or virtual machine metric. They limit installation instead. The Software runs on an Approved Environment, meaning servers or operating systems that meet Sage’s minimum specification, at one Installation Site unless the Order says otherwise. It may move to another environment or site only if it is permanently deleted from the old one.[2] The customer may make backup copies for reinstallation and one copy for internal testing. A copy at a disaster recovery site requires the additional disaster recovery license fees, and the number and location of all copies must be recorded.[2] Catalog proof: Sage X3 is installed at one Installation Site with one test copy.
Cloud / BYOL
A third-party provider, such as a hosting or implementation partner, may install the customer’s copy of an on-premise licence if the customer does not install a separate copy. The provider may use it only to deliver its service, and the customer remains responsible for the provider’s compliance.[2] Sage-hosted X3 is sold under the separate SaaS Subscription Agreement rather than by moving an on-premise licence.[3] The cited documents describe no path for converting perpetual licences to SaaS.
Programs
- Sage X3 Maintenance and Customer Support: for perpetual licences, invoiced annually at renewal. Sage may raise the fees on reasonable prior written notice, and the customer must promptly install all Maintenance Sage makes available. For subscriptions, support and maintenance are part of the Subscription Fees.[2][1]
- Sage X3 disaster recovery licence: the extra fee that allows one copy at a disaster recovery site.[2]
Customers may not use Sage X3 for benchmarking or competitive purposes without Sage’s written consent.[2]
Out of scope
This article does not cover vertical solutions built on Sage X3 by partners, which carry their own policy and license files,[7] Sage X3 versions before version 12, or Sage X3 agreements outside the US, Canada and the UK.