First steps into China are made by the big data company and revenue is up 73% but losses persist.
WANdisco is expanding into China following an OEM sales agreement with Alibaba Cloud.
The deal, which will see WANdisco Fusion embedded as a standard component in selected Alibaba Cloud solutions, may be a non-exclusive but it is a significant first step into an extremely large market.
Alibaba’s Cloud unit is no small name to align with and will likely boost the company’s share price, also potentially boosting revenue growth, which was reported as growing at 73% for 2017 in preliminary unaudited results.
Under the agreement with the Chinese company, WANdisco Fusion, which replicated
transactional data, will be sold as a standard component for things like Live Data migration to Alibaba Cloud, and for disaster recovery and hybrid big data.
David Richards, CEO and interim Chairman of WANdisco, said: “Partnering with Alibaba Cloud marks another significant milestone in our emergence as a critical part of cloud infrastructure. Our channel strategy has enabled us to expand our addressable market by; opening up new use cases for WANdisco Fusion, moving into new sectors, and now, growing our platform in new geographies.
“This is our first OEM agreement in the Chinese market and Alibaba Cloud is the largest provider of public cloud services in China, which adds significant market reach and scale to our business.”
Chief Architect of Alibaba Cloud, Mr. Hong Tang, said: “We believe WANdisco’s unique Live Data platform can significantly help our customers to leverage cloud for their data computing demands, whether it is to migrate their on premise data to our cloud, utilize cloud for disaster recover solutions or maintain a hybrid-cloud solution, while ensuring their data is always available, accurate and protected.”
The deal was announced at the same time as WANdisco’s preliminary unaudited results for the year ended 31 December 2017, where the company reported that its bookings were up 45% year-on-year to $22.5m.
Revenue for the year increased 73% to $19.6 million, however, statutory loss from operations increased to $13.5m from $9.3m for the previous year, and cash overheads stood at $24.5m, up slightly from the previous year at $23.4m.
Richards said: “This has been a pivotal year for WANdisco – following the transformation of our financial position during 2016, we have focused on building a commercial strategy which will deliver sustainable long-term growth. By expanding our partnership ecosystem we have significantly extended the reach of WANdisco Fusion, unlocking new sales opportunities in a cost effective manner.
“Our partnership with IBM brought two new record contracts during 2017 and integrations with AWS, Microsoft and Virtustream give me confidence that we can take advantage of the significant market opportunity for WANdisco Fusion. Organisations across the world are recognizing the value of being able to harness live data at scale and our technology is gaining increasing traction across new sectors and markets.
“Our strategy is delivering clear results; we have increased revenue by 73% while maintaining control of our costs, bringing us significantly closer to our goal of cash flow break even. We have started 2018 with a strong new business pipeline and I am confident WANdisco is well positioned to take advantage of a wide range of sizeable growth opportunities.”