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iomart announced strong growth in its cloud segment, which it owed in large part to increased uptake of cloud services among SMEs

iomart announced strong growth in its cloud segment, which it owed in large part to increased uptake of cloud services among SMEs

Glasgow-based cloud computing firm iomart announced an increase of almost 40 per cent in annual revenues for the latest financial year, with pre-tax profits of £14.6m – up from £10.7m in 2013. The firm said the company’s strong results were due in large part to increased cloud uptake among SMEs and the mid-market.

iomart said before-tax profit had increased 37 per cent over the previous year, and that revenue had grown 29 per cent to £55.6m, from £43.1m in 2013.

“We continue to believe in the long term opportunity for iomart as IT spending moves towards the ‘cloud’, as networks and connectivity expand and mobility increases,” Angus MacSween, chief executive officer of iomart.

“Our vision remains to be the best in the UK at the delivery of compute, storage and network in the cloud in a seamless, efficient and scalable way,” he said.

Its cloud revenues grew by 40 per cent to £44.7m, from £32m in 2013, which the company said was the result of growing SME demand for cloud services, and a number of its strategic acquisitions bearing fruit.

In October last year the firm bought Backup Technology (BTL) for £23m in a bid to expand its cloud backup and data recovery services portfolio.

MacSween said that mainly web-facing elements of infrastructure that have been outsourced to the cloud, and that most mission-critical workloads continue to remain on premise. But he also said this is slowly changing, reinforcing the long-term potential of the market.

“This reinforces the ‘dripping roast’ nature of the market opportunity and as I have been saying for the last five years, it has a long, long way to go,” he said.

iomart is among a handful of smaller cloud service providers consolidating around the UK mid-market; others include UKFast and Claranet, all of which are eager to get a slice of growing demand for cloud services among small and medium-sized organisations. According to IDC nearly three quarters of SMEs use at least one cloud service, and one in every four that don’t yet use one claim to have concrete plans to do so.

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