Archive for the 'New Zealand IT Industry' Category

Arron Patterson joins Datagate’s board

January 23, 2017

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This week at Datagate, we are pleased to announce that Arron Patterson has joined our board as a non-executive director.

The board and I are delighted to welcome Arron to this formal role with Datagate. He has previously been an investor and supporter of Datagate through the Flying Kiwi Angels over the last year and has an excellent knowledge of our business, our technology and the IT service provider market in which we operate.

Click here for the full story.

Update: Unfortunately Arron had to stand down from Datagate’s board on 10th February 2017 due to requirements of his employment. Arron remains involved with Datagate as an investor through the Flying Kiwi Angels.¬†

Billing sorted for Telco resellers

December 9, 2016

Spark Wholesale

This week Datagate received a great endorsement from Spark, New Zealand’s leading Telco, for the work we’re doing with their wholesale resellers.

Spark and Datagate have worked together to make the normally-complex job of billing Telco services as painless and efficient as possible for Spark’s wholesale resellers, – whilst also providing portal-access for their reseller’s customers, so they can analyse their service consumption and view & pay their bills on-line.

Making Spark’s resellers more competitive and profitable is what it’s all about. Their success is our success.

Read all about it in the Spark Wholesale Case Study.

Opportunities in the “Usage Economy”

November 20, 2016

Given my location in New Zealand and all the earthquakes that have occurred here recently, I’m not sure if it’s in good taste for me to talk about “seismic shifts” in business, but that’s certainly how I would describe the enormous change in consumer behavior that’s been evolving over the last decade and which is still evolving rapidly at this time.

The Cloud and smart phones have influenced customers’ attitudes and expectations. Consumers now expect a more immediate service experience and they are more inclined to subscribe to services than in previous decades. I refer to this as transition to the “usage economy”.

The “usage economy” is that which is based on consumers paying to use a product or service. Rather than buying an asset, they are more inclined to just pay for the use of that asset. The amount they pay is usually based on how much they use the product or service. This is the fundamental business model of the Cloud, on-line services, IoT, utilities and many other business categories (both new and old). This is the “usage economy” and this is where fast business growth is happening.

An interesting development within the “usage economy” is the emergence of service re-sellers. These re-sellers are businesses that typically have existing customer bases, maybe they are I.T. service companies or support organizations, utility re-sellers or agencies. These service re-sellers have the opportunity to aggregate numerous complementary services within their offering, to become a one-stop service shop – in the same way bricks & mortar shops sell numerous products to a defined customer demographic. Combining services, gives them more sales traction, more opportunities for increasing their sales margin and differentiating themselves from their competitors.

My company, Datagate is in the business of Usage Billing for Re-Sellers. We provide a white-label, on-line billing and reporting portal that connects to usage information and generates bills and reports that can be accessed by the re-seller and their customers via on on-line, re-seller-branded portal. Today we provide this essential service to re-sellers of telephony, utilities and on-line Cloud services, but the growth of the wider “usage economy” is bringing in new opportunities for us to service an increasing range of usage-based businesses.

“Internet of Things” (IoT) offers exciting business opportunities

March 14, 2016

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As part of my work with Datagate Innovation, I enjoy helping our clients investigate and monetize new billing opportunities.

Datagate provides a comprehensive Cloud platform for billing recurring charges, plus variable charges for measured consumption of services – and it’s amazing how many on-line businesses and new business opportunities tend to fit this model.

One of the most interesting subjects I’ve investigated recently (that fits the Datagate billing model), is the level of maturity and viability that “Internet of Things” technology is currently reaching. New cost-effective, low-power consumption devices are now being produced that can run for up to ten years on a built-in battery and be used to remotely measure and report on all sorts of things. These devices connect to a standardized LoRa radio network which will soon be widely available in New Zealand and around the world.

LoRa networks are cost-effective, low-bandwidth and can reach areas that traditional cellphone networks can not. The LoRa networks are in-turn connected to the Internet and enable Internet applications to access low-cost measurement devices in remote locations.

To my mind, the technology and the levels of standardization are reaching the point where new viable high-growth business models are now within reach.

Business and consumer applications for IoT devices and applications seem limitless, especially in areas where remote monitoring and reporting is required. These include applications for security, agriculture, automobiles, medicine, military – to name a few. Official estimates for future take-up of IoT are astronomical. 50 billion IoT devices on-line by 2020…

This is definitely a fertile space for application-developer entrepreneurs – …and Datagate‘s billing model.

Flying Kiwis invest in Datagate

February 6, 2016

FKA logo

This month I am very pleased to welcome the Flying Kiwi Angels as new investors in Datagate.

The Flying Kiwis have invested $242,000 of new capital in to the business. In addition, they bring a wealth of business experience and valuable industry contacts for Datagate.

This investment brings Datagate near to completion of our current investment round where we sought to raise $1.5M of new capital in order to expand and accelerate sales of Datagate’s Cloud Billing & Customer Service Portal. The Flying Kiwis’ investment brings us to a total of $1.46M raised in this round.

The Datagate shareholder-base now includes NZAX-listed Enprise Group, the Ice Angels, NZVIF and the Flying Kiwis, among others.

Datagate welcomes new investors and a new director

December 5, 2015

Datagate

Today I am very pleased to announce that Datagate Innovation Limited has signed up two new shareholders, Ice Angels Nominees Ltd and NZVIF Investments Ltd, as well as gaining a highly-respected non-executive director, Malcolm MacDonald.

The new shareholders have invested a total of $569,000 of new capital into Datagate, bringing the total capital raised in Datagate’s current investment round up to $1,219,429 so far.

The investors were led by Malcolm MacDonald, a successful IT entrepreneur, having been a founder of BankLink, a major New Zealand based accounting software success story, that was sold to MYOB in 2013 for $139M.

Malcolm joins the current Datagate board, consisting of Dr. Jens Neiser (representing NZAX-listed Enprise Group Ltd) and myself. I am extremely pleased to be working with Malcolm and Jens as fellow directors, who are both very knowledgeable, experienced and successful individuals in their own right.

I am also delighted to have the Ice Angels and NZVIF join Datagate as investors. The Ice Angels’ members have already been very helpful to Datagate and myself with strategic advice and valuable introductions.

Datagage is expecting to be able to announce further new investors within this round, in the very near future.

NZAX:ENS Enprise Group’s market announcement

Enprise moves to a tighter focus

November 7, 2015

This has been a momentous week for Enprise Group, with the sale of Enprise Software (our SAP-aligned software development business) and getting shareholder approval to allow new investors to invest directly in to Datagate (formerly a 100% subsidiary of Enprise Group).

These changes bring about a much stronger and sharper focus to each of the current and former Enprise Group businesses.

Enprise Solutions is the only business remaining 100% within Enprise Group and it is tightly focused on selling and supporting MYOB Enterprise software solutions to mid sized businesses in New Zealand and Australia. It has nearly 1,000 customers in total across both countries and is the clear market leader in New Zealand. Enprise Solutions is a strong, growing and profitable business that gives excellent support to its customers.

Enprise Software is now part of ProjectLine, a very successful North American SAP partner that is dedicated to sales and support of SAP Business One. That puts Enprise Software into a home much more aligned with it’s core business, which is Enprise Job for SAP Business One.

Datagate Innovation is now the master of its own destiny, with its own board of directors and its own shareholder base (including Enprise Group). My own personal focus is on working with the Datagate team to make this business a winner on a global scale. Datagate is all about monetising on-line services, the Cloud, billing and customer portals – an excellent focus for building value!

Datagate gains new shareholders, new board and increased independence

November 7, 2015

Datagate Innovation Ltd

On Wednesday this week, Enprise Group held a public meeting of shareholders to approve resolutions to allow Datagate Innovation Ltd to issue up to 2.5M new $1 shares to new shareholders and to allow me (as a director of Enprise Group) to buy shares in Datagate at a pre-money valuation of $1.5M. This allows investors to invest directly in to Datagate and for Datagate to become its own more-independent vehicle.

As soon as these resolutions were passed I wasted no time in buying Datagate shares, along with two other investors. More investors will follow in buying Datagate shares in due course, bringing even more new capital in to the business.

This has changed Datagate’s shareholder composition from being 100% owned by Enprise Group to being partly owned by Enprise Group and partly owned by other shareholders (including myself). As of today, Enprise Group owns approximately 70% and other shareholders approximately 30% of Datagate. This will of course change further as other shareholders come on board.

Datagate’s board of directors currently consists of Dr. Jens Neiser as chairman (representing Enprise Group) and myself. Other directors will be added in due course.

The Convergence of IT, Telecommunications and Electricity

October 14, 2015

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This is a time of great opportunity and also great risk of disruption, for businesses working in the fields of IT services, Telephony and Electricity.  Each of these three industries on their own are under increasing margin-pressure, because each industry can be seen to lack a great deal of differentiation.  All can now be classified as on-line infrastructure services. Phones are computers, computers can be phones – all require a network and electricity to operate.  Increasingly, all must work together to provide a working platform for the common customer.

The needs of the market, the customers, will ultimately drive the outcome of who wins and who loses.  The market favours those who are efficient, those that have the best understanding of the customer’s needs, those who adapt, those who offer the best service, those who are easiest and least costly to deal with.

Increasingly we are seeing the rise of businesses who offer combined IT and telephony services. These are now intertwined services, where phones and computers share the same networks, Internet connections and infrastructure,  They are now very much one and the same.  The technology of both has converged.  Furthermore, the sales process and the customer relationship are now the same. It no longer makes sense for the customer to source telephony and IT from different suppliers.

Now add the supply of electricity to the mix of IT and Telephony.  It’s a logical addition – another on-line service. It can leverage the same sales process and the same customer relationship as IT and Telephony. Companies that provide all three of these services to their customers, can offer a better, more complete offering, while at the same time getting maximum return on their sales and on-going relationship effort.

This convergence of on-line services, is the reason why I’m so convinced that my new company Datagate is on the right path.  Datagate is a white-label, Cloud-based billing engine and customer service portal for companies that sell services including Telephony, Electricity, Hosting, IT services and other utility services.  Datagate produces a single unified bill for the end customer that includes all subscribed services and lets them review and analyse their bills and consumption of services in their own private on-line portal.

Datagate is rapidly building a base of on-line service re-sellers, covering IT, Telephony, Electricity and other services, enabling these businesses to pick and choose the services they want to sell and allow them to create their own bundles and pricing plans.

Convergence is a great creator of business opportunities …and also a great disruptor.

 

 

 

CEO changes at Enprise and Datagate

September 11, 2015

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There is a lot happening at Enprise this week!

After almost thirteen years as the CEO of Enprise, I have decided to change my focus at this time to become the full-time CEO of our high-growth Cloud-Subscription Billing Engine subsidiary, Datagate Innovation.

Datagate is a new business with a compelling value proposition to the global “Cloud Economy”, in particular to resellers of Telco, Utility and on-line services. It has an exciting growth path ahead of it, which is going to involve serving businesses, large and small, all over the world.

Enprise Group has a new CEO – Elliot Cooper, who is no stranger to the business as an Enprise co-founder and CFO for almost thirteen years. In addition to his financial expertise, Elliot has extensive experience in the financial software business and was a designer of popular software products including Enprise Job and Exonet.

I will stay on board as a non-executive director of Enprise and retain a significant shareholding in the business.

We believe these changes will maximize Enprise Group’s shareholder value and better fulfill the potential of each Enprise business.

Enprise Group will retain a significant shareholding in Datagate and a director on the Datagate board, whilst allowing other investors, including myself, to invest directly in to the business.

As a high-growth Cloud company, we will raise direct investor capital to build Datagate through its formative years, before crossing over to profitability through its build-up of recurring SaaS revenues.