A partnership between JD Edwards SA and ERP.com Holdings has ended acrimoniously.
JD Edwards SA has objected to ERP.com`s failure to mention in its interim results, issued yesterday, that the partnership was terminated at the beginning of the year.
In its results announcement, ERP.com said that it had become one of the leading JD Edwards solution providers in the country, with a growing customer base.
However, JD Edwards marketing manager Simon Griffiths says the partnership was terminated at the beginning of the year.
ERP.com Holdings CEO Peter Forsyth says the end of the partnership has had "no effect whatsoever" on the size of his group`s client base, and, because it is no longer bound by a business agreement, ERP.com is free to expand those services to its entire client base.
He says there was a dispute over the partnership fee being charged by JD Edwards.
"We now no longer have to pay ridiculous partnership fees, which amounted to 20% of the turnover of our JD Edwards business, so in fact we expect to be more profitable as a result," he says.
Griffiths says the fee levied on ERP.com was at the standard rate for all JD Edwards implementation partners.
"We sold people software and then ERP.com implemented and maintained it. If they think they can get that business and not pay for it they are mistaken," he adds.
He says ERP.com is entitled to claim that it will continue offering services around JD Edwards software, but JD Edwards will no longer recommend it to its customers.
"We will tell our customers that we have preferred partners. If they want to use ERP.com and then come and complain to us, we`ll tell them that they were warned."
Forsyth says the JD Edwards business accounted for 9% of revenue and 6% of profit before tax for the six months to end-January. He does not expect the business to suffer as a result of the partnership dissolving.
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