K3 signs global hosting deal

SALFORD-based software specialist K3 Business Technology has announced a deal with South African software company Syspro to provide a hosted “Software as a Service” package to all of Syspro’s customers worldwide.

The deal will see K3 offering Syspro’s enterprise resource planning (ERP) software to its base of around 14,000 customers in the manufacturing sector.

The two firms already have an established relationship, as K3 has distributed Syspro’s software exclusively in the UK for some time.

K3 said the new agreement represents a significant step forwards and creates a global market for its own managed support service, as Syspro currently sells to customers in 60 countries.

Over time, K3 expects its hosting and SaaS services to significantly increase the Group’s annual recurring income, which currently stands at 40% of total revenues and is derived from annual software licence renewals.

Andy Makeham, chief executive of K3, said: “This is a landmark agreement for K3.

“Uptake of SYSPRO BusinessLive, as it is known, is expected to gain greater momentum as the attractions of cloud computing grow and with some 14,000 SYSPRO customers worldwide, the agreement represents an exciting opportunity to accelerate the growth of our managed services business.”