Microsoft in R475m deal

March 30th, 2011 by Manmohan Leave a reply »

The computer company and Department of Trade and Industry (DTI) revealed the first small black-owned software development firms in a deal that costs R475million.

The four software development firms are Chillisoft, a developer of software used in healthcare, manufacturing and other industries; Maxxor, which specialises in mobile phone and web-based computer applications; BUI, a computer-security company; and Home Grown Business Integrations, which develops electricity management systems.

Microsoft’s managing director, Mteto Nyathi, said the investment would address challenges facing the government and South Africa, mainly creating jobs, developing enterprise, building the local software economy and developing scarce technology skills.

“We will support these companies for the next seven years to become large, global enterprises. We hope they will also develop some of their solutions on Microsoft platforms, so there is an indirect benefit, but the primary reason is to help these companies become large, global companies,” said Nyathi.

The DTI said the programme had the potential to boost transformation within the South African information and communications technology industry.

“This is a significant step in driving BBBEE with multinational companies operating in South Africa. The backing will hopefully add new impetus to our vision of creating a strong home-grown South African software industry,” said Sipho Zikode, acting deputy director-general of the DTI.

Maxxor chief executive Mustapha Baboo said: “Not only will the programme be good for Maxxor and the other partners’ future growth prospects, but it will provide much-needed skills development in the country as a whole.”

Source:http://www.sowetanlive.co.za/news/business/2011/03/30/microsoft-in-r475m-deal

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