Iomart hosting in the clouds

Wednesday 1st June 2011
Step up to the Cloud to bring in the revenue. Courtesy:

For the year ended 31 March 2011 Iomart Group profit before tax rose to £2.8m (2010:£0.4m, before gain reduction in deferred consideration of £0.9m). Group revenue also showed a big increase,up 38% to £25.3m from £18.3m in the previous financial year, suggesting that cloud services have moved beyond the hype.

Group CEO Angus MacSween, said: “Cloud computing has become something of a buzz word with many companies adding the ‘cloud’ tag to everything they do without backing it up with reliable delivery mechanism. 

"At iomart we have built our technologies from the ground up specifically to be delivered via the cloud. As a result we are becoming recognised as an authority on the provision of cloud-hosting solutions and are well positioned to take advantage as the market evolves and people look for reliable vendors.”

Iomart Hosting won 400 new orders during the year, many of which were additional orders from existing customers. Increasingly these orders include some aspect of cloud or virtual computing in the overall solution. 

“With more and more businesses looking to the cloud for their data solutions we believe we havepositioned ourselves well to take advantage of this market moving forward. We are in a market that is growing and that is here to stay and we fully expect to participate strongly in that growth,” says MacSween.

The adjusted EBIDTA for iomart Group plc was £6.6m, showing an improvement of 113% (2010:£3.1m). Again the adjusted EBIDTA for the hosting side of the business also showed an increase of 124% to £6.2m from £2.8m in 2010. 
iomart Group plc owns five data centres around the UK and continued to invest in its data centre infrastructure by fitting a further 7,000sq.ft of space in its Maidenhead data centre during the year.

Last year, Iomart Group secured a £10m credit loan from Lloyds Banking Group after it acquired Surrey Easyspace for £12m in 2008 and purchased managed hosting provider RapidSwitch in May 2009. Financial results then showed EBITDA of £3.1m (2009: loss of £0.3m), revenue growth of 55% to £18.3m (2009: £11.8m)  and cashflow from operations at £3.9m (2009: £0.3m).

International Data Corporation cloud research shows that worldwide revenue from public IT cloud services exceeded $16bn in 2009 and is forecast to reach $55.5bn  in 2014, representing a compound annual growth rate of 27.4%. This growth rate is more than five times projected growth for traditional IT products (5%)

Cloud technologies will form the centrepiece of many large IT systems in the near future, the report stated, while a major section of the software market will be dominated by firms offering software-as-service (SaaS) compositionand delivery. Public cloud hosted services will also grow by 25% in the next few years, the IDC estimates.

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