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Microsoft Teaches On The Nature Of Risk

This is what they call business risk: the possibility that a partner can decide not to renew your contract after you have invested and built a business around that partner product. Yes, Microsoft is terminating an agreement with a South African firm (EOH) and the firm has lost 35% of its market cap.

Shares in EOH Holdings plunged by as much as 34.3% in Johannesburg on Tuesday morning after news emerged late on Monday that Microsoft had terminated two partner agreements with the JSE-listed technology services group.

TechCentral reported that Microsoft served notice on EOH Mthombo on Friday that it plans to terminate the company’s Licensing Solution Provider agreement and its Microsoft Partner Network agreement.