Iomart (LON:IOM) , the AIM listed Cloud computing and managed hosting services company, said this morning that it was seeing strong demand through its iomart Hosting business for the outsourcing of IT services to the Cloud. In an update ahead of a trading statement expected later this month, iomart said the hosting operation was closing between 30 to 40 new orders per month from both new and existing customers and had won several significant new contracts in the past few months. The iomart share price edged up slightly to 89.5p on the news.

Four recently signed contracts, from both new and existing customers, for the provision of a range of complex hosting services, have a combined contractual value in excess of £1.8m. iomart said the contracts provided further evidence that cloud and virtualised environments are fast becoming the de facto method of delivering technology services and applications in companies. The new contracts have been secured with Office2office (LON:OFF) , the specialist provider of managed procurement and business critical services, GMG Radio, part of Guardian Media Group, one of Britain's leading radio businesses encompassing the Real Radio, Smooth Radio and Rock Radio brands, a pan European network provider and a well known recruitment company.

Angus MacSween, iomart’s chief executive - who was recently interviewed by Stockopedia - said: “We believe that cloud computing has reached a tipping point, having significantly moved through the early adopter phase over the past six months. Almost every company, regardless of sector or size that we speak to is considering either a full or part cloud solution for their IT needs. The differing types, or definitions, of cloud computing are now becoming widely accepted and understood, and definite purchasing trends are beginning to emerge. We are finding that the micro business is embracing the public cloud, whilst the enterprise and mid market is seeking the reassurance, scalability, security and reliability that a high availability hybrid or private cloud offers.”

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here