On 3 June 2019, IXUP Limited (ASX: IXU), a technology company providing secure data analytics announced that it had been appointed as a new cloud services supplier as part of the Federal Government’s Digital Transformation Agency’s (DTA) Cloud Services Panel.
The DTA’s Cloud Services Panel is a platform which helps in bringing together government buyers and the supplier of cloud services. All Australian Government agencies, along with the state and territory government agencies, could access this Panel. The Panel provides services like software-as-a-service (SaaS), platform-as-a-service (PaaS) as well as infrastructure-as-a-service (IaaS). The admission to the Panel would help the company to contract with Australian Government departments and at the same time leverage its SaaS user model for accelerating new and existing opportunities. The patented environment of the company works entirely within the Microsoft Azure cloud. The online services provided by the company offer secured data analytics from a single SaaS platform.
Previously, in 2015, the DTA was established to support the government departments, as well as the agencies, experience digital transformation. As government organizations stepping towards online solutions, the Cloud Services Panel makes the process of investing in digital services simpler. During the period between 2017-2018, the Non-corporate Commonwealth entities had spent $1.2 billion on information technology as well as digital initiatives.
Also, in the Q3 FY2019 which ended on 31 March 2019, the company launched the on-demand software-as-a-service (SaaS), model. The company had also announced the extension of its go-to-market strategy by introducing IXUP Light TM and IXUP Expert TM, offered in addition to the Platform-as-a-Service (PaaS) model of the company.
During the period, the company demonstrated its secure data analytics platform to more than 1.3k attendees at Gartner Data & Analytics Summit 2019, which include Chief Data Officers as well as Heads of Business Analytics.
The company used A$1,382,409 in the Q3 FY2019 and A$3,981,396 within 9 months (YTD) in its operating activities. By the end of the Q3 FY2019, IXUP had net cash and cash equivalent A$3,553,105. The estimated cash outflow for Q4 FY2019 is ~ A$1,400,000.
Recently on 29 April 2019, the company announced its partnership program with Tech Mahindra to establish a data analytics environment for secured multi-party collaboration. Under the agreement, the clients of Tech Mahindra would be able to leverage the IXUP’s technology to connect multiple data sets in a fully encrypted analytics environment.
The company also entered into a reseller agreement with Deloitte Touche Tohmatsu Australia (Deloitte). Under the agreement, Deloitte intended to mutually offer the secured data analytics capabilities of the IXUP platform along with the consulting as well as market experience of Deloitte.
Further, the company also highlighted the strengthening of its strategic relationship with Microsoft, as the platform of the company would implement Microsoft SEAL, which is a homomorphic encryption library, developed by Microsoft Research.
Expenditure and Outlook:
While the company continues to make investments for its growth, it is also focused on aligning costs and refining business processes to confirm an increasingly lean organization. As per the estimation of management, the expenses in Q4 FY2019 would reduce to a total of $1.4 million. Moreover, the company expects that the big-data analytics market would soon be exceeding US$200 billion.
The shares of the company last traded at A$0.090 (as on 3 June 2019), up by 12.5% from its previous close.
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