Wandisco PLC (AIM:WAND), the data activation platform, saw its shares rise on Tuesday following news it has signed an agreement worth $31mln with a second tier 1 global telecommunications supplier.
The company said half of the $31mln will be paid in advance following the commencement of the project and as this is a Commit-to-Consume agreement, revenue will be recognised in step with the client's movement of data.
The telecommunications sector is a key strategic target market for the company as it supports a number of industry verticals with their own Internet of Things (IoT) use cases. In this case, the client is one of the largest global service suppliers of IoT applications. Initial use cases are expected to include smart meter, automotive, manufacturing and natural gas-related data.
WANdisco said it was chosen as the preferred provider because of its ability to migrate data at scale without requiring any system downtime, along with its capacity to automatically migrate data changes as they occur, ensuring data consistency.
In a statement, David Richards, CEO and chairman of WANdisco, commented: "This is the second tier 1 global telecommunications company to choose WANdisco's solutions this year, underpinning our unique ability to seamlessly and securely migrate large-scale data from edge platforms to the cloud. This contract represents a record initial agreement for our business, with the potential for this value to grow further as we have seen with other customers."
"The IoT use case of moving data from edge platforms to the cloud, is continuing to drive a significant pipeline of opportunities for our business. Companies across multiple industry verticals face significant challenges in successfully executing this data movement and unlocking the full capabilities of the cloud. Our unique solutions and proven experience in the IoT market make us well-placed to continue winning market share and supporting global clients in these use cases.
"Following this agreement, bookings for FY22 are now expected to be significantly ahead of market expectations," he added.
In early morning trading, WANdisco shares were 3.7% higher in London at 822p.