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Auto-Mate named top Progress revenue earner for 2006

Johannesburg, 06 Mar 2007

Auto-Mate, South Africa's most successful developer of software solutions for the automotive dealership market, has been named as Progress Software South Africa's top revenue earner for 2006.

The company was recognised for its contribution to revenues at a banquet at the Michelangelo in Sandton.

"Auto-Mate has been a consistent partner for Progress down the years," says Rick Parry, MD of Progress Software South Africa. "We are grateful to Michael Botha and his team for another outstanding year during which they grew their licence revenue by 15%."

"Our ongoing growth is due in part to a buoyant motor industry, and in part to net customer gains over our competitors," says Auto-Mate MD Michael Botha. "We expect similar growth in 2007. We have bought in enthusiastically to the software as a service model, as it makes us more competitive and flexible."

Software as a service, as defined and executed by Progress partners, typically sees clients defer capital expenses and rather pay for their applications and licences over the life of their engagement with a software vendor. This has multiple benefits for both parties, and creates a new way of strategic engagement with clients.

Agri IT, the IT arm of Malmesbury-based Kaap Agri, was recognised as the partner growing its software as a service revenues fastest, taking its user base to over 1 000; and MIP Holdings for its strategic use of software as a service.

"Progress and some of its partners lead the world in adoption of software as a service," adds Parry. "Agri IT is extending its reach across southern Africa, and MIP has had a dramatic and extraordinary impact on the business of its clients through its approach to this new model for delivering software."

During 2006, MIP's visionary delivery model saw clients such as Alfinanz, Coris and Channel Life grow their business exponentially, largely due to the way MIP had designed and developed their IT systems. MIP was accordingly able to gain ground at Sanlam.

"Software as a service can change the entire vendor/customer paradigm," says MIP CEO and chairman Richard Firth. "The way we have delivered it is fundamentally impacting the financial services landscape in South Africa, and it's good for our company, and for Progress."

Quality Business Consultants (QBCon), a partner which has developed a number of niche applications, was honoured for its commitment to Progress. Marketing director Gustav Piater notes: "Progress-based applications form about 80% of our business. During 2006, we engaged closely with three large customers who were considering a move off Progress to alternative technologies. We sold them consistently on the long-term benefits of Progress, and in the end they have remained on the platform, with consequential benefits to Progress."

"The Commitment to Progress award is made up of a basket of 12 measures," adds Parry. "QBCon was able to tick all 12 boxes."

Dovetail Business Solutions, one of South Africa's leading providers of supply chain and logistics solutions, was acknowledged with a special award in recognition of its determination in acquiring, closing, servicing and retaining complex accounts.

"No matter how tough the business environment, Progress continues to grow its revenues and licence base, year on year," adds Parry. "This year was no different, as we grew our software as a service revenue base by 19%. We can only do this with the support and loyalty of our more than 30 partners."

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Progress Software

Progress Software Corporation (Nasdaq: PRGS) provides application infrastructure software for the development, deployment, integration and management of business applications. Its goal is to maximise the benefits of information technology while minimising its complexity and total cost of ownership. Progress can be reached at www.progress.com.

Editorial contacts

Karen Breytenbach
Predictive Communications
(011) 608 1700
karen@predictive.co.za
Rick Parry
Progress Software SA
(011) 254 5400
rparry@progress.com