Universal Computer Services has announced an outsourcing agreement with Pep Stores which involves Pep considering switching all retail systems to licence-free Linux.
Universal, a subsidiary of the JSE-listed UCS Group, says the agreement brings to 25 the number of furniture, clothing and speciality retail chains serviced by the company.
The Pep chain is expected to add a further 1 000 in-store systems to the 2 700 systems already installed and supported by UCS in SA.
As part of the agreement signed on 21 August, Pep will evaluate replacing existing retail systems with Universal`s retail application solution run on Linux.
John Bright, MD of UCS, says that of the 2 700 stores Universal services, 2 000 run their systems on Linux.
"Currently we service the JD Group, Retail Apparel, Lewis Stores and Pep among others, we encourage them to opt for Linux as it will cut down on licensing fees and ultimately save them money."
Bright says UCS has been running its software on Linux since 1995 and its customers have been very willing to switch to the licence-free platform.
The Universal retail enterprise application is C-based, but Bright says a Java-based application will be released to market soon.
Bright says the outsourcing deal with Pep will deliver financial gains only in the mid- to long-term, when the material affect of the deal will enhance earnings and net asset value.
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