CSC, Compuware sign $14m deal
- 04 August, 1999 13:05
Compuware announced last week it has signed a licensing agreement with CSC worth $14 million over the next five years.
The company reports the deal is designed to streamline the licensing arrangements between the two companies and their predominantly large enterprise customers.
John Yarrington, Compuware's Australian and New Zealand sales director, said the deal will extend CSC's ability to offer outsourcing services using Compuware's productivity software tools.
"Ultimately, CSC and Compuware have many customers in common," he said.
The deal sets a precedent for the companies by providing multi-user licensing and capacity-based charging. The licence cost is calculated according to the MIPS (millions of instructions per second) capacity of the CPU.
Compuware will continue to provide direct support for its mainframe and client server products, leaving the outsourcing services to CSC.
The mainframe products covered include File-AID, XPEDITER, Hiperstation and Abend-AID. The client server tools covered include QACentre, FaultXpert, File-AID Client/Server and the Eco family of system management products.
Yarrington said the move comes after months of negotiations between the two companies.
Chris Lawrenson, manager, production services at CSC, said the new licensing agreement is cost-effective as it enables the company to move licences around according to workload.
"This means we can provide significantly better pricing and service for our customers," he said.
"A further benefit is greater certainty over software licensing costs. Not having to negotiate agreements on a site-by-site basis saves considerable time and effort for both CSC and Compuware."