Siltek, to whom Smith and Heath had sold Shadow Solutions, experienced financial difficulties and Smith bought the business back from Siltek and Heath decided to return to the United Kingdom. Smith’s decision was based on the recognition that the emergence of distributed computing models meant that servers and PCs would also need disaster recovery solutions. Office or work area recovery was becoming important. “Essentially, this was the beginning of business continuity because it was now becoming apparent that computing and business were becoming inseparable,” Smith says. “Business was looking for a holistic approach as opposed to IT Disaster Recovery alone.”
A deal was done with MGX, a business that was expanding into computing, and Shadow Solutions became MGX Business Continuity Services.
In the same year, MGX bought a Johannesburg Stock Exchange listed IT services company called CCH. Shortly thereafter MGX unbundled the main lines of business. In 2003, Smith led a management buyout of MGX Business Continuity Services, which they renamed ContinuitySA. The deal involved the Development Bank of Southern Africa, which had bought the debt, and a black empowerment partner, Sirius.