CAPE TOWN – There can’t be too many tech entrepreneurs out there who can really claim to have sold their app to Microsoft for a billion dollars. Erik Damgaard is one such tech deity.
He founded the original Damgaard enterprise with his brother Preben and a dedicated band of application developers and marketers with funding from a Danish pension fund. His C5, XAL and AXAPTA product family passed through several phases on the way to Microsoft ownership, namely a joint marketing venture with IBM followed by a merger with Danish competitor Navision.
Contemporary reports put the combined Damgaard/Navision share purchase price at $2b in 2001 just (a few months before 9/11) and these products now form the ERP core of Microsoft’s newest cloud deployed Dynamics 365 solutions.
Fast forward 17 years and Damgaard has decided to reinvent his 1980s vinyl collection – backed by Danish pension funding – once again. He has taken a look at what Microsoft have done to his brainchild in the intervening years and decided to keep the best and ditch the baggage.
By distilling and simplifying the critical operational aspects of SMBs, Erik has been able to bring his “unplugged” album to market at about quarter of Microsoft’s prices. Well, not exactly unplugged of course – more like wireless.