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Former local companies 'de-focus` on SA

Phillip de Wet
By Phillip de Wet, ITWeb contributor
Johannesburg, 18 Apr 2001

Consolidation within MB Technologies has seen former local companies Live Technology and Systemsfusion gradually move their businesses to the US and cut ties with SA, leaving The House of Synergy (THOS) as the local arm of MB Technologies.

During March, THOS, 50% owned by MB Technologies, took over the local hosting business of Systemsfusion, formerly known as Dy/Dx, as the latter completed its move out of SA.

Systemsfusion, another MB company now based in the US, concentrates on developing software for Internet service providers, but provided hosting services through the Hosting Company as a holdover from a previous business initiative.

Those hosting clients have now been transferred to THOS, bringing to an end the local presence of Systemsfusion.

"We didn`t want to let these corporate clients down by dropping their Web sites and THOS was the obvious provider to keep it going," says Bruce McGregor, MB Technologies business development director.

THOS, which provides Internet services through a relationship with AT&T, also took control of clients from Live Technology, which forms the second part of the American MB business, also severing the Live group`s involvement with SA. Live Technology operations were rationalised in what MB Technologies describes as a "de-focus" on SA.

Matthew Green, joint MD of THOS, says it is likely his company will move further into the hosting arena as it integrates these clients. THOS is currently better known for its Web site development and the Around The Web publication, which has a relationship with The Citizen newspaper.

"It is a natural progression to hosting, especially since we already provide bandwidth services to other companies within the MB group," Green says.

Yet THOS is considered to be in its development stage and is seen as a service provider to MB Worksoft, the e-business arm of MB Technologies. "We wouldn`t see it as a mature business," says McGregor.

THOS was formerly part of the Caxton media group, but moved into the MB Technologies stable during 1999 after a management buy-out.

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