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UK cloud firm iomart sees its profits rocket

Margi Murphy | May 29, 2014
iomart, one of the leading UK cloud companies reported a 37 percent pre-tax profit as UK IT spending moves toward the cloud.

iomart, one of the leading UK cloud companies reported a 37 percent pre-tax profit as UK IT spending moves toward the cloud.

The Scottish company reported that overall revenues grew by 29 percent to £55.6 million, an increase from £41.1 million the previous year.

iomart's hosting segment grew by 40 percent to £44.7 million, an increase from £32 million in 2013.

The encouraging results follow a spell of organic and acquisitive growth. In September last year iomart acquired a former competitor, Redstation, for £8 million in a bid to improve expertise in the protection, backup and hosting field. The same month iomart bought Leeds-based cloud firm Backup Technology for £24 million.

Growth was boosted by the completion of a "multi-million" fit out of around 600 racks of datacentre space in Maidenhead for the increasing SME and enterprise cloud adoption. iomart now owns datacentres in eight locations across the UK.

Cloud competitors - an opportunity rather than a threat

iomart's Chief executive Angus MacSween said: "There is a lot of ongoing development in network technology, in the compute and virtualisation layer and in the storage layer as the big technology vendors evolve their own solutions for a future in the cloud. We have strong and growing relationships with all our technology partners and we work hard to ensure we are aware of, and are following, all the relevant technology roadmaps.

"There are many IT companies who now sell 'cloud' services. This is more of an opportunity than a threat as we see a future where specialist service providers will provide wholesale cloud products to the market. iomart is well positioned to be a leading provider of such products.

"To date it has mainly been the web-facing elements of infrastructure that have been outsourced to the cloud and the back-office workload continues to be handled "on premise". Most of this back-office infrastructure is bought in the same way as it was 15 years ago. We believe this will change and we can already see the early adopters starting to move to the cloud. This reinforces the 'dripping roast' nature of the market opportunity and as I have been saying for the last five years, it has a long, long way to go."

Macsween said that the company was actively looking for more organisations to absorb in the coming year.

 

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