MS puts the spark in start-ups

By Siyabonga Africa for Microsoft
Johannesburg, 27 Feb 2009

Microsoft is offering low-cost to free software and certification worth more than R500 000 to start-up companies.

The software developer has unveiled a new worldwide initiative, BizSpark, which will give small companies access to software and support, to help them develop and take their products to market at small upfront payments, if not for free.

Microsoft developer and platform strategy group leader David Ives says the company has already signed more than 50 start-ups worldwide, and has seen overwhelming support for the initiative from government and the private sector.

Ives explains that for companies to qualify, they need to be nominated by an investment capital firm, be privately-owned, operate in the software development sector and make less than $1 million (R9.96 million) in revenue a year.

There is a price

The start-ups will have to meet individually-based performance markers over the three-year period they are in the BizSpark programme. Ives explains Microsoft will provide support structures to those companies and will meet with them regularly in order to ascertain if any progress has been made.

“Typically, after the three-year period, the start-ups will hopefully migrate from BizSpark to certified Microsoft programmes,” says Ives.

After three years, organisations graduating from BizSpark will have to pay the same licensing fees as other businesses. Ives says the start-ups will be liable for a $100 (R992.66) exit fee which they have to pay upon completion of the programme, or if they leave for any reason.

Businesses are grown

“The key objective for BizSpark in SA is to support the local software economy,” says Ives in a statement. “Enabling the IT sector is an area specified by the South African government for support and the encouragement of further development.”

Microsoft has partnered with various business incubators, such as Seda Nelson Mandela Bay ICT Incubator and Internet Solutions, to give start-ups in its BizSpark programme access to business development and investment resources.

Ives says the initiative is a testament to Microsoft's commitment to growing the IT industry. It is built up from the academic programmes it runs, such as DreamSpark, which made professional software tools available at no charge to high school and university students worldwide, he notes.