​Kiwi cloud start-up brings on board regional Dell EMC CTO

​Kiwi cloud start-up brings on board regional Dell EMC CTO

Arron Patterson invests in software start-up through Flying Kiwi Angels.

Arron Patterson

Arron Patterson

Datagate Innovation has appointed Arron Patterson as a non-executive director, with the Dell EMC CTO of Asia Pacific and Japan also investing into the New Zealand cloud software start-up.

For customers including a network of Spark resellers and one of New Zealand’s largest IT services companies, Datagate’s cloud billing solution provides online billing, reporting and customer self-service for usage-based services.

Patterson joins BankLink founder Malcolm McDonald on the Datagate board, and has also invested in the company through investment group Flying Kiwi Angels.

In his role as investor, advisor and mentor for Flying Kiwi Angels, Patterson routinely sees presentations from six different start-ups and start-up ideas each week.

According to Patterson, Datagate “stood out from the pack”.

“I was impressed by [Datagate CEO] Mark Loveys’ track record of creating shareholder value and with the quality of the team around him,” he said.

“Datagate’s product is also pretty mature and it has happy customers. The foundations are in place for the company to grow in scale. Part of my regional CTO role is to evaluate the cloud IT service provider market.”

Patterson said one of the persistent challenges for these organisations is the need to carve up a service stream and give it to multiple metered customers.

“Datagate’s value is that it can bill, rate and present virtually any service that is subscription or usage-based,” he explained.

“Metered billing continues to be an issue for managed service providers the world over, which is why Datagate has global growth potential.

“This is a start-up that has successfully solved a difficult issue for many utility and telco customers. Cloud IT service providers are the next logical target.”

Datagate CEO, Mark Loveys, said Patterson’s expertise in managed service provisioning, and his global business connections, are valuable for both customer acquisition and strategic planning.

“Arron lives and breathes the large IT service provider market, which is one of Datagate’s biggest market opportunities,” he added.

“These are highly strategic customers because they generate new ‘white label’ opportunities for Datagate within their own reseller and customer communities.

“This grows annualised revenue. It’s a dynamic that has seen Datagate almost triple customer numbers and contracted annualised revenue in the last twelve months.”

Formerly a wholly-owned division of NZAX-listed Enprise Group (ENS), in 2015 Datagate was established as a joint venture between Enprise Group and new investors, including the Ice Angels, VIF, Flying Kiwi Angels and Datagate management.

First round seed funding of $1.46 million was raised and a separate board established, BankLink founder Malcolm McDonald joined the board as a director and Enprise CEO and co-founder, Loveys, was appointed CEO.

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