WANdisco hopes for government contracts as turnaround takes hold

Billy Bambrough
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CeBIT 2013 Technology Trade Fair
Firms are increasingly switching to storing their data in the cloud rather than in their own data centres (Source: Getty)

Software developer WANdisco hopes to pick up a raft of government contracts this year as its strategic turnaround takes hold.

While no government contracts have been secured yet, WANdisco is planning to pounce on Whitehall plans to move data from physical servers to cloud based storage.

The company has recently bagged contracts with two of the world's top five big data companies, Google and Amazon, and says it is in talks with other heavyweights Microsoft, IBM and Oracle.

At the tail end of last year WANdisco announced two new contracts with a US financial services firm as well as an existing European telecomms client.

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WANdisco is currently in talks with other financial firms around the world.

Shares in the company have dropped to less than 10 per cent of highs in 2014.

Last month WANdisco posted a pre-tax loss before exceptional items of $30m in the year to December 2015 from $38.3m the year before. Revenue fell to $11m from $11.2m.

"Cost discipline has been demonstrated, and the Fusion product still has the potential to scale materially through the theme of enterprise data storage shifting to hyperscale public cloud,” analysts at Investec said in a note to clients following WANdisco's results announcement in March.

Aim-listed WANdisco has denied speculation that it could be the subject of a takeover bid.

"We've not had any bids from any serious contenders," chief executive and co-founder David Richards told City A.M.

The company is expecting that demand for data to be moved to the cloud will increase along with the rapid growth of Amazon's data hosting arm, Amazon Web Services (AWS).

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AWS is the fastest-growing enterprise software company of all time, bringing in revenue of $7.9bn (£5.6bn) in 2015 and is expected to grow by as much as 50 per cent this year.

Last month Google said it will expand its Google Cloud Platform to 12 more regions between now and the end of 2017, opening new data centres in each of the regions it wants to move into.

Google has been playing catch up in the data hosting industry after losing ground to Amazon, Microsoft, and IBM.

The first two new Google data centres will be opened in Oregon in the US, and Tokyo, Japan. They will be up and running by the end of this year, while the remaining 10 will go live by the end of 2017.

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