Covata Ltd. (AX:CVT) has entered into a strategic alliance with dataglobal, a German enterprise information management and archiving software company, to gain access to its data classification technology and to work together on cross-selling opportunities. This should accelerate the development of Covata’s data security platform (DSP) as well as offer a new channel through which it can sell its solutions in Europe. Covata will also have the rights to resell dataglobal’s other products globally.
Strategic alliance with dataglobal
Covata has entered into a strategic alliance with dataglobal, a privately owned German software company, specialising in enterprise information management and archiving, with more than 550 corporate customers across 40 countries. Covata is acquiring access to dataglobal’s data classification IP, which includes an automated data classification engine, connectors into content service platforms and data analysis tools. It will pay €1m over FY18 and FY19 for its own version of the core IP and will also sign up to a maintenance contract to access support from dataglobal.
Accelerating development of the DSP
Covata plans to integrate dataglobal’s data classification IP into its data security platform. Covata already has data discovery (via Cipherpoint) and secure data sharing functionality, and this adds a crucial building block to the platform. Covata expects the integration process to take three to four months, which is a much shorter timescale than if Covata had developed this software in house. The reduction in internal R&D for this element of the platform should offset some of the cost of the IP.
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