Wandisco's (LON:WAND) deal with a major telco provider is the first deployment specifically for a multi-cloud use case. At $565,000, the deal is not particularly large, but we believe the potential addressable market for Fusion with this use case is significant. It is also notable that the last three announced deals have each involved different partners – Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM) and Amazon (NASDAQ:AMZN) respectively – again highlighting the broad applicability of WANdisco’s offering.
This deal is significant because it is the first WANdisco has secured for its Multi-Cloud product, specifically for a multi-cloud use case. In this implementation, Fusion will be used to replicate data across different data centres in the Amazon AWS public cloud environment. We believe the addressable opportunity for Fusion in this use case is potentially very large. In implementations like this, Fusion can be deployed as a means of solution for achieving data geo-redundancy in the cloud vendor’s environment.
The agreement was closed in 2018 and is valued at approximately $565,000 covering a three-year period, although the majority of the deal value will be recognised in 2018. There is no trading update with the announcement, but the statement says that the company has built strong momentum in H2. We also highlight that the last three deals that WANdisco has announced have involved three different tier one partners ($3m with a healthcare insurance provider with Microsoft, $700k with a healthcare provider with IBM and this one with Amazon), highlighting the broad applicability of WANdisco’s offering. We look for an acceleration in the rate of deal flow in 2019, while larger strategic contracts remain in negotiation.
Business description
WANdisco is a distributed computing company. It has developed a suite of solutions based around proprietary replication technology, which solve critical data management challenges prevalent across cloud computing, big data and the ALM software markets.