Microsoft has cancelled its channel partner agreement with EOH Mthombo.
The software company has served the EOH group company with 30 days’ notice, although EOH says it hasn’t offered any reasons for the contract termination.
“The effect of this notice, if acted on, will be that group subsidiary company, EOH Mthombo, will no longer be a direct reseller of Microsoft licences with a profit impact of approximately R10-million in the current financial year,” the group said in a SENS statement today.
“However, Microsoft remains an important part of EOH’s network of the more than 50 technology partners within the EOH Group and resolution of this matter is a priority.”
It goes on to say that EOH has initiated plans to ensure minimal disruption to customers and to limit the potential impact on the business, until more clarity has been obtained.
EOH group CEO Stephen van Coller is engaging Microsoft and hopes to resolve the matter soon.