Strategically partnered with Victory Tech Services: Livetiles Ltd (ASX: LVT) stock rose 2.53% on November 2nd, 2018 after the company strategically partnered with Victory Tech Services, which is a leading IT service provider to US Government departments. Both the companies will jointly pursue opportunities with the United States Department of Defense (DoD) and other federal, state and local governments under the partnership. Victory Tech Services has provided IT consulting to the US Marines for the last 14 years and uses LiveTiles software for SharePoint development work for a DoD agency and several other highly visible US Government SharePoint projects. Victory Tech Services’ strong relationship with LVT has provided critical assistance with the implementation of LVT’ software across a number of shared US Government clients, that also includes the US Marines and US State Department. The strategic partnership between the two companies formalizes this relationship and expected to provide an expanded opportunity for both parties to grow their existing US Government customer footprint and pursue more significant opportunities together. Further, Victory Tech Services’ experience to deliver high profile SharePoint projects with the DoD and other US Government departments will help LVT to get more opportunities in this sector and will allow both companies to strategically advance more significant deals through a formal arrangement.
Moreover, the US government offers a significant opportunity for LVT in a sector which is growing strongly, as the US Government applications market alone is expected to reach $10.6 billion by 2021, and Microsoft is the top vendor to it. The Company’s strong strategic alignment with Microsoft and ongoing joint marketing initiatives will help LVT to strongly get positioned to get benefit from this significant sector growth and from Microsoft’s number one market position. Already LiveTiles & Microsoft are jointly growing AI adoption across USA. Like any large and complex organizations, the government departments such as the US DoD face challenges but provides the best information, data and tools to employees. LVT has already helped some of the world’s biggest companies to realize the productivity benefits of digital and intelligent transformation. Currently, Victory Tech Services is looking for getting the necessary approvals and credentials to receive US General Services Administration (GSA) Schedule 70 IT Contract approval for LVT’s entire product suite, which if granted, will enable the business to be conducted more efficiently with the US Government in the future. Federal, state, and local government buyers spent approximately $45 billion through GSA and VA Schedule Contracts in FY16. IT equipment, software and services represented the highest spend, which accounts for over $14 billion in sales. Meanwhile LVT stock has fallen 38.76% (Source: ASX) in three months as on November 1st, 2018.
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