The year 2020 is the beginning of the new decade, and it is predicted that cloud computing and Artificial Intelligence (AI) are going to dominate the tech industry in 2020. A report from Deloitte states that there would be a continuous increase in the adoption of cloud computing as companies adopt flexible consumption via hybrid & multi-cloud atmospheres.
Let’s know some interesting facts about cloud computing:
- 90% of companies use cloud-based services, and the number continues to increase. In the upcoming three years, cloud investment is expected to double as a percentage of the IT budget.
- Nearly 60% of the workload of enterprises in 2019 was running on the cloud.
- Amazon Web Services is the top public cloud service provider in 2020.
- An analysis by Cisco predicts that in 2020, the SaaS industry is moving towards a turnover of US$130 billion.
- As per IDC’s estimate, the public cloud spending by 2023 would reach US$500 billion. Gartner predicts SaaS revenue to jump more than 50% by 2022.
In this article, we would look at five companies into cloud computing.
rhipe Limited (ASX: RHP)
rhipe Limited (ASX: RHP) is the cloud services company. The company combines as well as distributes subscription licensing models for providers of service. These are from several leading software vendors of the world like VMware, Microsoft, Citrix, Red Hat, Trend Micro Veeam, DocuSign & Sinefa. The company’s offices are located across the APAC region – Sydney, Melbourne, Auckland, Bangkok, Singapore, Kuala Lumpur, Manila, Jakarta & Seoul.
The company is working continuously to expand its presence in South East Asia and at the same time, bring new and innovative cloud products to existing partners and markets. The company works closely with the present as well as new software vendors, industry analysts plus service provider clients to further develop market opportunities for its network of service providers & strengthen demand from end-users.
RHP works in collaboration with its client businesses and assists them to fill capability and capacity gaps, allowing them to expand their cloud offering. Rhipe’s solutions can be used in co-tenders, consulting, white-label implementation and support and workforce outsourcing.
FY2019 Result and Outlook of RHP in 2020:
In FY2019, the company delivered strong result with 65% growth in the operating profit to $12.8 million.
In FY2020, the company expects that its public cloud business would remain to be the growth engine for its business. Sales and revenue would continue to grow as more and more firms in the APAC region shift their workload to the cloud. On this front, the company would be investing in various areas and countries like:
- Front office sales, marketing & technical staff, to help in growing the customer count in all countries.
- Microsoft Dynamics channel workforce, at first concentrating on assisting I.T. resellers with Dynamics sales & implementation prospects in Australia.
- Ongoing investment in the development of Prism as well as ‘SmartEncrypt’.
Operating profit in FY2020 is expected to be ~ $16 million, which eliminates the effect of any changes in market conditions or major expansion initiatives.
FirstWave Cloud Technology Limited (ASX: FCT)
FirstWave Cloud Technology Limited (ASX: FCT) is the leading Australian cloud security technology company.
Cybercrime has become the biggest threat to every business and economy as well. Because of the cybercrime, it is expected that the cost would be more than US$6 trillion annually by 2021.
With the advancement in the cloud-based computing and Software as a Service, most of the companies have opted for cloud-based applications for their day to day operations because of the ease and convenience to access vital procedural, operational and financial documents and resources at any point of time. But at the same time, it has also resulted in malicious cyber-attack.
FCT helps the companies as well as government organisation of multiple sizes in protecting them from the threat by offering quick & affordable access to the latest, comprehensive & adaptive cloud-based cyber-security solutions present.
Q2 FY2020 Result:
On 31 January 2020, FirstWave Cloud Technology Limited released its Q2 FY2020 Results for the period ended 31 December 2019.
- Cash balance at the end of Q2 FY2020 was $4.2 million, which includes bank guarantee deposits of $134,000. The cash balance was projected to $4.9 million. However, as a result of timing difference of grant income $1.3 million which was receipted in early January 2020, cash balance was $0.7 million below the forecasted value.
- Cash inflow during the quarter was $6.9 million while cash outflow was $5.5 million.
The company expects that the cash position would be strengthened by the expected customer receipt.
ELMO Software Limited (ASX: ELO)
ELMO Software Limited (ASX: ELO) provides a complete package of payroll & rostering , cloud HR and software solutions for time & attendance. The company assist its customers (organisations) to streamline payroll and HR and processes in order to increase efficiency, productivity and lessen costs.
ELMO is the only provider of integrated cloud HR, payroll and rostering / time & attendance solution in Australia and New Zealand which offers
- ONE vendor
- ONE dashboard
- ONE user-experience.
ELMO is the fastest growing HR technology company which provides innovative cloud HR, payroll and rostering / time & attendance technology in 1000+ companies across the APAC region.
1H FY2020 Results; Statutory revenue increased by 33.9%:
- Statutory revenue increased by 33.9% to $23.6 million as compared to the previous corresponding period (pcp).
- Annualized recurring revenues (ARR) soared by 42.8% to $52 million.
- Cash receipts went up by 36.3% to $27.4 million.
- of customer grew by 30.9% to 1,478.
LiveHire Limited (ASX: LVH)
LiveHire Limited (ASX: LVH) is the provider of the cloud-based human resources software and platform services. LiveHire assists organisations in finding their targeted people and matches people to the job in their interest areas.
The talent acquisition and engagement platform dramatically accelerate the overall recruitment process and transforms the candidate experience. The platform leverage LVH’s AI-powered sourcing tools to enhance the reach and open new sources of skills. It creates an excellent candidate experience that considers job applicants as real people, coordinates a smooth hiring process for the candidates & hiring managers. The platform also supports in making better hiring decision using LVH’s analytics capacity to change real-time candidate data into actionable insights.
Q2 FY2020 Result; ARR increased by 47%:
- Quarterly cash receipts increased by 42% to $1.4 million as compared to the September 2019 quarter.
- Annualised Recurring Revenue (ARR) was $3 million, a growth of 47% YoY.
- Fifteen new clients were added to the existing pool of clients. Thus, it brought the total count to 99.
- There were substantial product developments which include 4 new integrations with 3rd party HR technologies, incorporation with the US and Australian job boards, & key developments to LVH’s unique differentiators in AI Candidate Matching along with Talent Pooling.
LVH is ready for exciting pace of advancements in 2020 with its technology partners, channel partners, current customers, & potential clients throughout North America & Australasia. The company is pleased to integrate its client’s total talent blueprint to fulfil the prospect of candidate engagement, recruitment, mobility, big data & analytics.
ReadCloud Limited (ASX: RCL)
ReadCloud Limited (ASX: RCL) is an Australian technology company focussed on education that offers an advanced e-learning solution to the secondary schools in Australia. RCL’s proprietary eBook reader provides digital material to students & staff. This is characterised by vast functionality, comprising the capability to make commentary in, and transition third party content into eBooks.
Students and teachers can share notes, questions, videos & web links directly inside the eBooks. Thus, the eBook gets converted to a location where both students and teachers can enter into a discussion; both can collaborate and gain social learnings. As a result, this improves learning outcomes.
Q2 FY2020 Activities and Results:
- Strong growth noted in School Curriculum & Vocational Education as well as Training sectors.
- RCL’s platform is now being used by more than 350 schools. Thus, representing a growth of 75% from January 2019.
- RCL has more than 103,000 users on its platform with further users still being signed in for the 2020 school year by contracted schools as well as Vocational Education & Training providers.
- Cash receipts during Q2 FY2020 increased by 285% on pcp to $575,000. Total cash receipts from the customer for 1H FY2020 was $809,000, up 155% on pcp.
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