The mystery surrounds a decision by Microsoft South Africa to resolve two partnership agreements with the group of listed technology services JSE EOH.
TechCentral learned Monday that Microsoft notified EOH Mthombo on Friday that it plans to terminate the contract with the company's licensing solution provider and its Microsoft Partner Network agreement.
EOH holds the Microsoft agreements through its subsidiary EOH Mthombi.
The agreements expire 30 days from the date of termination notice.
A spokeswoman for Microsoft South Africa confirmed Monday that she had notified a notice on EOH Friday, but said that the company can not comment on the reasons for doing so, citing confidentiality.
Debbie Millar, head of investor relations with EOH Holdings, also confirmed that the agreements were closed by Microsoft South Africa, but said the group did not provide explanations to the group.
"We are working with them to understand their decision," said Millar. EOH Holdings' CEO, Stephen van Coller, will hold a meeting with Microsoft representatives on Tuesday afternoon to discuss their decision, he added. It is expected that there will be more clarity after that meeting.
No direct access
Millar said that Microsoft is "an important part of our application ecosystem". However, he pointed out that the software company is just one of over 50 partners with which the group works.
Termination of agreements means that, unless they are reinstated, EOH will no longer have direct access to Microsoft products and services, he said. He could still collaborate with a Microsoft reseller, even if he admitted that it would be a "less acceptable market path".
EOH, he said, has already started implementing a plan to ensure that there are no disruptions in the group's customer base.
"We are very committed to solving it in a way that meets the requirements of Microsoft and Microsoft."
EOH shares declined by 1.8% to 4.03 pm in Johannesburg at R26.58. – © 2019 NewsCentral Media