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WANdisco signs largest-ever cloud contract

The live data company signed a deal with a major US health insurer worth around $3m
December 14, 2018

WANdisco’s (WAND) shares climbed over a tenth on the news that it has signed its largest-ever cloud contract, worth around $3m (£2.4m), with a major US health insurer. The client will use WANdisco’s flagship product, ‘Fusion’, which allows companies to move swathes of data to the cloud consistently, without downtime.

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The contract capitalises on WANdisco’s “co-sell” relationship with Microsoft (US:MSFT), as the customer will be moving its data to Microsoft’s ‘Azure’ cloud.  It will initially span a three-year subscription period, but the customer has “substantial data requirements”, so there could be scope to extend this.

For Stifel, the deal reflects “the strength of WANdisco’s underlying IP”, and could attract more customers. But the house broker had expected Microsoft Azure’s ‘data lake’ upgrade to occur in November and this now appears to have moved into the first half of 2019, which might contribute to the “drifting” of some WANdisco deals accordingly. So, it has reduced revenue forecasts for 2018 by $3m to $18.2m.