Data#3 announced another half-year of the huge growth in the company’s public cloud division.
In the six-months that end on 31st December 2019, the company’s public cloud sales had risen 76.5% reaching $251 million. Public cloud growth also increased the overall software licencing by 18.1% making it reach $425.3 million, which makes it the largest division within the Brisbane-based solutions provider by far.
Infrastructure business at Data#3 had been boosted as well, rising by 4.8% to $180.3 million. Although, consulting revenue did fall 36.4% to $8.5 million. The firm did say that the outcome reflected the decision to restrict focus on the division in the financial year of 2020, which contains preventing big, fixed-price application projects. About 60% of Data#3’s revenue is currently under contract.
Project service went down by half a per cent, now at $27.6 million. Support services had increased by 8.9% to $45.1 million and recruitment had risen 5.9% to $28.5 million.
All-inclusive, the company’s revenue for the end of the six months has increased 11.6% to $718.9 million, and net profit after tax had risen 41.5% to $8.7 million.
Laurence Baynham, the Chief Executive said: “The market is growing as digital transformation fuels the overall information technology spend, and we have seen sustained large project activity. The current period result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and we are delighted with the rapid growth in our cloud-based business.”
Data#3’s success in public cloud business shows a big turn of events from 2017 when it had to get rid of its own cloud platform in order to push customers onto public cloud options. The company did take a hit in the short term, but it seems as though they are making a comeback to achieve targets set for financial objectives for the complete 2020 financial year, that will conclude on June 30th 2020.
Data#3 will definitely continue to bring public cloud revenue for many years to come, as they are the federal government’s sole provider of Microsoft licenses.