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Buy buy buy... Screw the award and the celebrity lifestyle and sell some bloody solutions. winners 2014 SaaS solution SVCawards. Dragon not there and Rob Pope collected award. I am going home now..

Yep, down 40% yesterday and the board went quiet. I hope some of them got out and took thir gains. Unless they had done their research and was investing because they understood and believed it not just jumping on the bandwagon. I said I expected to see it back in the teens in Dec but didn't think it would drop so quickly. Who knows where this is going today and the rest of the week but people will be making it losing a lot of cash depending how they call it.

All gone a bit quiet. Amazing what a couple of days on top of the growth list can do to attract new people to invest. Shame they are all just trying to ride the wave of hype rather than doing their own research. Some burnt fingers I reckon. Not much hype on the board today.

Curious to know what price you got in at?

Shot up today and now back to open price. What you going to do now?

I am not sure you are going to get any this side Xmas. Still the year end trading update to come and I expect them to announce that they didn't meet their revised down forecast but will use this MS announcement as the latest reason why it will all be OK in the end. Will be really interesting to see where it ends this week now the initial hype of the announcement seems to have clamed down. I still see this back in the teens or the pennies by December as fundamentally nothing has changed here.

As I have said many times. When this company announced they were listing I knew them very well and know this industry very well. There was so much hype but the reality never backed it up. I decided to share my views here and if it helped some people save themselves some cash by not investing at the crazy numbers then I have done my bit. So far I have seen this share go from £1.25 to 10p before the recent couple of days where it has shot back up. My knowledge then was very helpful to some who chose not to invest or get out on the detail I was posting here. None of it is insider knowledge I am just sharing my knowledge of the industry to stop people getting sucked in by the hype....... Ask yourself why a company of this size burning so much cash needs 2 CEO's at £250k each with one of them running round trying to fulfil a celebrity lifestyle than running his business for the shareholders. You have your views and I have mine but so far I have been pretty much right in my views and I don't see anything to change that. Hope some people of made money on the bounce but by the end of the year when they don't hit the FY figures they have already revised down and the cash call early in the new year this will be back down in the low teens or pennies. All they keep delivering is press announcements about a new relationship. Virgin media Voda HP Dell G CLoud Secure O Cloud MS CSP Or how they have a growing pipeline or doubled the resellers to over 500. Each time this allows them to raise more money to send up in smoke while they try to live out the fantasy that they have any clue how to make this business work. They have been at it for over 3 years and have blown over £50m to build a company that turns over less than £10m and loses money. At the beginning the hype was a £100m business by 2015 and now the best they can hope for is a business that breaks even by then....... As always DYOR but I will continue to post my views and hopefully some people will benefit from my knowledge and not get sucked in, providing I am right of course. If you read all my posts you will note that I was even tempted at 9p, but didn't. The base has a value for someone to acquire and put on their own platform, sacrifice the senior staff. In doing so with economies of scale it would make this worth £1m - £3m depending on the cost base to deliver the MRR. The trouble is when the next cash call comes the price will go low that I wouldn't mind betting they take it private on the cheap so they can trade sale it without disclosing figures to save the embarrassment for the dragon. I cant see them being able to raise any significant cash or fund this through to profitability now. Or if they do you wont see any aggressive growth as they wont be able to invest in the resource to deliver it.

the last 2 days have been a great run and those that got in on Tuesday are laughing all the way to the bank. If you are one of the lucky ones and day trading this then |I hope you catch it right and make loads of money. I have been on this board from the start and the last 2 days are the only time this share has produced and real upwards trend. But remember a lot of people invested at £1.20 and all the way down and will be showing a big negative on their investment. Like I said in a previous post to check back in with me at the end of Dec. They have revised their figures down already for the FY and will miss the revised numbers. YOY growth will be minimal and in the new year they will need more cash. As quick as this has shot up on good news, which most people don't really understand, it will drop like a stone on bad news. Long term I still don't see this as a winner but if you are making some money trading from tis position then good luck to you and hope you manage to call the peaks and troughs right.

One last thing. If you want to see the benefit being able to self bill brings then go and look at Inty's numbers. They have been a syndication partner of MS for over 3 years and have been able to self bill all MS services in that time.

Let us not forget that selling MS Cloud Services is a small part of the OUT business and not something they have built their business model around. Millions have been spent building O-Cloud (IAAS Platform), Hosted CRM, Hosted Exchange and probably the biggest thing that OUT push is Hosted Lync. They then raised millions more to build Secure O-Cloud, that hasn't been certified yet. OUT are one of only a few companies that do hosed Lync with full voice break out (You can call a landline from Lync) However in 2015 Lync is being rebranded as Skype for business. So the feature to make calls to landline is soon to be included as part of Office 365. What happens to the underlying platform then? You could argue it puts OUT in a better place as they wont have all the cost of managing and refreshing the infrastructure behind it if they just sell MS. This would be correct but as just a MS reseller they will be competing in the UK with other 15,000 partners who can all do the same. And what happens to the customers and revenue they are generating from those platforms? The trouble with all of this, that the whole industry suffers with, and OUT are no different and that is finding good sales people to sell it. We have already seen this over the last two years. They claim to have doubled the companies that resell their service from 250 to over 500. They aren't customers they are companies with their own customers that go out and sell OUT services in the market. They claim to have strategic relationships with Virgin Media, BT, ATOS, Vodafone and HP who sell the services to their customers. The HP press release was sent out twice (1 year apart) claiming the same thing If this is all true then why were their H1 number showing zero growth on the H2 numbers from the previous FY. They claimed delays in on-boarding but that was over 6 months ago and a lot of the 250 partners added in would have been smaller and up and running quicker. They claimed pipeline was building, where are the orders? sales cycles in this space aren't that long..... Will it drive more business because they can now bill and will be easier for customers? Every MS partner who sells cloud solutions gets a portal. You setup your customers services and add in their company name and details. The portal creates a billing link for you to send to your customer. In your portal you can see who has and hasn't paid and when they are for renewal. The customer clicks on the link, checks name and address is correct and fills out their CC or DD details and then they are singed up. MS invoice the customer monthly and then collect the cash by DD MS pay partner their commission In the portal you can then add new services for the customer, additional users and log fault tickets for any issues they have. They have been selling the MS services since they started, as KA pointed out and not had massive success. Is the fact they can now invoice rather than MS going to be the silve

This hype will not last and this will be in the low teens by end of this year. The underlying business hasn't changed and it is a dog. The CSP program they have been entered in to isn't even ready and won't be properly operational for a few months. They still need more cash and there is no escaping that. I still reckon we will see some Comms that they have missed their revised numbers with some rubbish about delayed onboarding. Seeing as they used that before I reckon this time they will use delay in getting IL3 accreditation but don't worry we got IL3 it is only a matter of time. All IMHO and DYOR. Comment if you like but my money is on my predictions here being right and time will tell.

It will vary as most products are sold on a per user per month basis and not by company. You could buy IAAS which is effectively renting a server in the cloud and this would have a fixed cost per month. Windows Azure from MS is charged depending on how much you use it but is usually relative flat costs per month when averaged out. Lync, Office365 and CRM Online all have different plans where you get different features but are all charged per user per month. The advantage of the cloud model is you can scale up and down based on seasonal requirements, peak business periods or as your business grows and adds more staff.

Monthly Recurring Revenue - It is the revenue they get from customers on a monthly recurring basis. Doesn't include any one off services for installation or consultancy. Be clear this is revenue though. There will be an attached costs for that revenue of datacentre space, power, hardware, server and product software licensing and staffing costs to maintain it. That applies to their own products on their own infrastructure ie CRM, Lync, IAAS etc For the MS products that are hosted by MS that they resell ie Office365, Azure and CRM online etc see my other post today about revenue recognition and how the announcement will change that. You will start to see this MRR go up at a faster rate on the MS hosted stuff but the costs will go up in line so will appear a lot better than it is.

Agree, I made that point: Out will now show MRR of £10 ongoing but margin will be the same (Will be slightly more as they are improving the margins for CSP partners)

No. I am just adding my industry knowledge to a smoke and mirrors company that I saw list and thought I would share my views and maybe save some people some money. Have been doing so since it listed and so far I haven't been proved wrong that this just wont make it and the only people getting rich are the BOD. How many companies turning over such a small amount and burning more cash need 2 CEO's at £250k each?

There is no new contract with MS they have just been invited to be part of the MS CSP program. So have several other providers in the UK and this will be opened up to more over the coming months. So what is it all about: MS have always sold licenses to customers through resellers. The reseller invoices the customer and collects the cash and then pays MS for the license less the margin which is the resellers profit. When MS launched cloud products they changed tact and invoiced the customer direct. MS then collect the cash from the customer and pay the reseller a margin. The reseller community have been up in arms about this for several years and MS have said they will eventually allow resellers to transact cloud services in the same way they have always transacted traditional license. The CSP program is the start of that change and MS have already changed the competencies to be a Gold loud partner in line with this. There is a lot of work still to be done to get the program working as the tools they have on place are early on in development. The resellers they have chosen to work with will help them shape the program before it is rolled out to further partners in the next 6 months and then to all partners within 12/18 months. This can be a good thing as you get early access but you have to deal with all the pain and distraction as they finesse the program and tools. In my honest opinion it is always better to be in round 2 as all of the bugs have been ironed out and you didn't have to waste a whole load of time testing and fixing things with them. This may be a silver bullet for OUT to convince the market their model is working although underlying business performance will not change. I will explain why. Out sell one Office 365 seat for £10 MS invoice customer for £10 and then pay Out £1.80 for the first year and then 60p on going (O365 resellers get 18% margin for all spend in year one and 6% ongoing) This means Out MRR only £1.80 going down to 60p. Going forward OUT will do the following: Out will invoice the customer for £10 Out will pay MS £8.20 year one and then £9.40 ongoing. Out will now show MRR of £10 ongoing but margin will be the same (Will be slightly more as they are improving the margins for CSP partners) Over the course of the year they will change all current MS cloud customers to this new billing model and all new customers will come in on it. This will show a big increase in MRR but underlying margin will be the same. This will not drive the ability to win more business as all partners can currently provision and manage MS cloud services they just cant bill them. This will make the customers more sticky though as a lot harder for them to move between partners if you own the billing relationship

You should read though my posts on here as I have a very negative view and have spent a lot of time posting details on why I think the drop was more than deserved. I know a lot about the industry and my earlier post today on why I don't rate the news in the RNS but why it will help them convince the market they have it working.

Good luck. If you have done your own research and think 40p is achievable then good on you for diving in.

That is a joke, right? They have gone from over £1.20 to 10p in less than a year. In one day we see a gain from 10p to 14.5p with nearly a million shares traded (more sells than buys) and you think that is not bad. Ok. The day isn't over yet.......

After months of red and the price dropping from £1.20 to 9p you say "We make money" you must have bought yesterday as other than that you have made nothing.