IOMART (LON:IOM) report: Cloud computing contract wins

Date: 11 March 2010
Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Iomart has announced that it is adding some 15-25 contracts per month per existing customer, reflecting rising demand for remote “cloud”-based solutions.

- Contracts include; Doctors.net.uk, the largest online medical community in the UK with some 160,000 registered users; Tillate Media, the online nightlife community and guide; SocialGo™, the AIM-listed Bright Things social network; learndirect’s operator Ufi Ltd; and a hosted web-based security service being deployed on some 270,000 laptops to be issued in Government’s Universal Home Access (UHA) project.

- Total reported contract value is £1.6m for services, with over 2.5m users.

- We also note major developments in the broader context of online services. As expected, Cisco Systems with AT&T yesterday showcased its field trial of 100Gbps DSL backbone network technology (based on the Cisco CRS-3 Carrier Routing System and Ixia K2 100Gb traffic generator / analyser). The trial demonstrated 100Gbps transmission with real-time processing on a 900km link between Louisiana and Florida. AT&T expects the technology to be ready for commercial deployment in “the next few years”.

- We remain positive on prospects for Iomart’s hosted services model which is well-timed for the development of demand for “cloud” based services.

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