Sydney-based Covata calls Cisco agreement "frustrating and unrewarding"
- 20 September, 2018 16:08
Sydney-based vendor Covata has announced its 10-year software license agreement (SLA) with Cisco will come to an end in 12 months, six years ahead of schedule.
The licensing agreement was initially signed in March 2015 with a focus on delivering Covata's platform and related products to Cisco clients.
Specifically, the agreement meant that Covata's solution would be deployed to Cisco.
Now, Covata, which is publicly-listed on the Australian Securities Exchange (ASX), said that the tech giant has provided a notice of termination, effective 24 September 2019.
"This closes off what has been a frustrating and unrewarding relationship for the company and does not distract from our continuing sales momentum in the US and globally,” said Ted Pretty, CEO and managing director at Covata.
The company told shareholders on 20 September that Cisco never actively pursued the use of Covata technology named in the original SLA despite representations of their intention to do so made by their management in 2015 and 2016.
"For its part, Covata continued to engage with Cisco in 2017 and 2018 to try to make the relationship work, albeit likely in a different form to originally proposed," the company stated.
During 2017, Covata briefly mentioned the partnership with Cisco in two of its reports.
In a report to shareholders from February 2017, Covata said that Cisco saw that the company had potential to provide some secure elements of their Service Exchange Plataform (SXP) for cloud automation, however, at that time, Cisco had not progressed on developing that platform.
Meanwhile in a second report from August 2017, Covata said that it no longer had an active relationship nor have received any revenue from Cisco.
"Covata's partnership with Cisco remains in the background purely as a long-term project for the group, with resources needing to be allocated to more immediate opportunities," the company told shareholders at the time.
ARN has contacted Cisco for comment