Data#3 Shares Fall on Microsoft Partnership Changes

IT services and solutions provider Data#3 Limited (ASX: DTL) saw its share price decline by 8.7% following the announcement of changes to its partnership with Microsoft in Australia. The company revealed that updates to its agreement would result in a reduction of incentives earned from its Microsoft Enterprise Agreements. These agreements are a significant part of Data#3’s revenue stream, and the changes are expected to impact its earnings moving forward. While the company has not provided specific financial details, the market reacted negatively to the anticipated reduction in incentives. Data#3 reassured stakeholders that it remains committed to its partnership with Microsoft and will focus on adapting its business model to mitigate the impact of the changes. At the time of writing, the company’s share price reflected investor concerns over the revised terms.

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