New Managed Cloud Services contract win for eg solutions plc…
eg solutions plc ( “the Company”; LSE-AIM: EGS), announces that it has won a new Managed Cloud Services contract from a major third party outsourcing customer. The contract will provide eg operational intelligence® on a hosted basis with implementation and training services for users processing life and pensions business across two sites. This is the second hosting contract won from this customer.
The implementation will commence immediately and is expected to be completed by April 2014. The total value of the contract over three years is £0.75 million of which approximately £300,000 will be recognised in the current financial year.
eg is experiencing growing demand for its Managed Cloud Services from customers seeking more flexible and cost effective access to business applications. Although this initially reduces perpetual licence income, the move to hosting has led to a 36 per cent increase in recurring revenues on the previous year and reflects the company’s strategy to build a more predictable business model. In July the Company won a £1.2 million three year hosting contract with a major new customer in the utilities sector.
In November, the Company announced the first contract win through its strategic partnership with Aspect Software Inc (“Aspect”), from a leading global financial institution, for 750 users in Asia Pacific with the potential to roll-out across the global back office functions thereafter. Revenue from this contract will be recognised in the current financial year. Since launch to its sales team in May 2013, Aspect has built a substantial pipeline of opportunities for the eg operational intelligence® software across North America, EMEA and Asia Pacific.
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