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Going to be a rollercoaster ride today. Seem to peak at 75% and dropped back a little now. Going to be some people cashing in now so will be intrigues to see where it ends.

Didn't expect it to bounce this much tho.... Would have been funny if I di buy after all that berating them and stole 50% profit in a day. But sadly I just couldn't bring myself to do it.

lol love your posts like this. In honesty I was tempted when it dropped below 10p yesterday as thought good opportunity to make a few quid as was always going to bounce a little from there as market cap under £5m makes this cheap. I say that because if someone bought the customer base and got rid of most of the senior team and used their own people the base would be worth around about that. Not going to claim I did and am laughing now as making money because I didn't..... Just keeping it real

So you are pinning your hopes on MS still having faith because they are letting them sell their products? Read my reply on the other thread as hardly revolutionary. What you need to see here is the strategic partners and the 500 partners bringing in orders and OUT shouting from the roof tops all the customers they are winning and the growth in MRR. There has been one decent customer win announcement in the last 6 months from all of those partners selling their products. You have to think that if there were loads more they would be telling you but seeing as they aren't you can only assume there aren't any.

Of course I am happy to give you a view. 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.

He couldn't afford to take it private. He doesn't have the personal wealth to buy up the shares and even if he raised the cash how would he fund it through to profitability? Piers doesn't have any real money, he hasn't ever made a success of anything. This is going to need a few million injection over the next FY as a minimum and he doesn't have it and with the track record of failing to deliver I don't know where he would raise it from. That's what will make the next 12 months interesting.

They only did the trading update last year because they were doing a placing at the same time. They don't haven any good news to tell so they wont it will just be a wait for the FY figures in Mar / Apr. What I am waiting for is the news that they wont meet the forecast they have already revised down. I also believe they will need more cash before the end of March and I am intrigued to see how they are going to raise it. At this price you would have though there would have been real consideration to take it private if the Dragon was so certain this will be a success. My questions to Piers...... Where are the strategic partners (Vodafone, Virigin, Atos, BT) at the beginning of the year it was on boarding delays but where are the orders now? Where are the Public Sector sales people who are going to sell direct? Hard to find good sales people in the IT industry isn't it Piers? But if you new the industry you would know that. The partner base selling Out services doubled from 250 to over 500. Where are the orders from them? Still confident you will turnover £100m in 2015 as you shouted about in the press 2 years ago? Your words "If you are not gunning for £100m then you shouldn't be in the cloud" well guess what? You haven't even made £10m and you have burnt over £10m since you made that statement. I wont even dignify your "we will build this to a £500m business" with a response as that was ludicrous, you clown. You made a fool of yourself at the partner conferences and industry events talking this up and most knew you were clueless when it comes to all things IT. You spent millions on brand and marketing in an industry you have knew nothing about. You have never made a success of any business and this will just be your next failure. Your move Piers.........

A lot of people mocked my comments about how this just doesn't work and the dragon is deluded and had no clue. Look where we are now..... Has dropped over 90% of its value now and could be in to single figures by the end of the week. I bet full year on year growth will be next to nothing and maintain they will need more cash to get through this. Trouble is they won't be able to raise it now and from these values I wouldn't mind betting they try to take it private.

Like I said in my previous post, bad news is coming. Questions is how bad.... Market seems to think very bad. The investment co that put the last £1m in at 20p have nearly done half of it.....

All depends how big the miss is and how much cash has been burnt. Figures wont be out until March and by then they should be able to give an update on how the current IL2 cloud platform is growing in orders and when the new IL3 platform will be live. I don't expect positive news on either of these......

There has been little or no trades over the last few days and nothing to day but the price is dropping. Not long until end of the FY and I am just waiting for the news that the revised forecasted figures wont be met. Is the market adjusting ahead of the inevitable?

www.channelregister.co.uk/2014/10/29/outsourcery_pga_o_cloud Come on wake up a little bit. Do you honestly think there will be an O-Cloud, that is now IL2 and then there will be a complete separate cloud, Secure O-Cloud, that will be IL3. They have got the current platform IL2 certified as an interim measure because they knew the IL3 cloud would be severely delayed and they cannot provide a date when it will be ready (See press release in link). After all the hype they needed to give the market something and this was much easier than delivering the whole thing. Do not forget that they continue to move the goal posts and backtrack on nearly everything they have said. Still no contract news and this stinks of trying to give the market something positive before the end of FY miss of the revised budget numbers that is coming.

http://commsbusiness.co.uk/news/outsourcery-gains-government-accreditation/ Another target missed. Only got IL2 certification but of course the spin has started and it is a "natural step" to IL3. Why cant they seem to get anything right...... So much for first Microsoft IL3 blah blah blah blah

There will be news in November to tell us that they are not going to achieve the figures for the full FY. Even though they have already revised them down they still are not going to make it....

Creeping down........

We are coming up to 3 months now since the last announcement of a contract win. there has to be a flaw in the model as you can't sign partner agreements with Vodafone, Virgin, HP, BT and Atos and not have good news to shout about. Not to mention the partner base that doubled to over 500. The smoke is clearing and the story cant hold up much longer....Not long until we get the "full years figures wont be as expected" announcement (this is coming soon) They cant even fudge the growth figures like the did in H1 saying it was 68% up on previous year although flat on previous period H2. It is the worst kept secret that the H1 on H1 growth was only due to the under the radar Rise acquisition...... Year on year I estimate growth to be less than 10%...That would be seen as good growth in most profitable companies but when you have burnt £50m and have a turnover of £7m and a cash burn as high as that 10% is not enough you need 50% plus year on year. Nearly time for it to go private IMHO as the dragon wont be able to take the embarrassment when it joins the 90% club....

Wow. I guessed it would be Q1 before they needed more funding but it looks like the cash burn continues. This should get them through to Q1 but I still think they will need more by then. I am guessing Encore see the opportunity to ride on the back of what has already been invested and at £1m for 10% it will just be one of a number of decent punts....

Even if they do get the IL3 platform ready on time there are already 4 other providers on the G Cloud platfor offering these services. One of them being HP direct. There isnt much take up either so this is looking like a white elephant.

Not as far as I know. he is going to have to do something to save the embarrassment. Still no decent contracts to announce and I would place a bet they are going to miss their FY forecast and growth will be non existent. Time is running out and this cant survive on hype while it is on the public market and the figures are laid out for all to see. At least if he takes it private he can carry on telling the story and raising more cash without delivering results. Many times I have seen PL claim the markets don't understand OUT, as if it was a bad thing. I would say for OUT that is a good thing, otherwise they would have gone under by now....

I am slightly confused over the strategic partner messages they keep releasing such as the below from the recent FT article: “I think the [market] sentiment is negative, in some ways,” Linney told City A.M. “The frustration really has been… that it’s taken a bit longer for them [key partners] to come online, but they are now.” In their admission document (May2013) they claimed: "Outsourcery provides a wide range of Cloud-based IT and communications services via its network of partners to both larger enterprises and SMEs. Outsourcery has secured commercial relationships with companies such as Vodafone, Virgin Media Business, BT, HP and Atos" Out keep banging on about how it is taking longer than expected to bring them online and how pipeline is building but a quick search on Google regarding above strategic partners reveals the following: Virgin Media signed partnership agreement in May 2013. In Sep 2013 Virgin launched Lync as part of their broader offering. So that is 4 month to on-board them as a partner (sensible) and a year of them selling their offering but no real contracts of any value to speak of. After 1 year with no traction you have to ask how long Virgin Media would stay interested? It doesn't take a year to build pipeline on a product like this. Also why no further announcement of other products that Virgin have taken in to their portfolio? ATOS were another who signed up in May 2013 with no real further news to date. Vodafone signed a strategic agreement with Out in Jan 2014. this snippet from the press release is interesting as it says they have already completed the integration: "Cloud Service Provider Outsourcery has signed a strategic partnership with Vodafone following a 12 month business integration process. The strategic partnership will enable Vodafone to resell Outsourcery's Microsoft-based cloud services, including full Enterprise Voice Lync Server, Exchange Server and related professional services. The strategic relationship has been expanded beyond the original UK focus to include Vodafone's global enterprise customer base, which required further integration work than had been originally envisaged. The agreement of the strategic partnership will now allow both Outsourcery and Vodafone to focus on revenue generating opportunities." Now this is a global agreement covering the full portfolio of products and after a 12 month on-boarding period has been running for 9 months with nothing significant to speak of. That is bizarre for a global contract with Vodafone. BT - I cant seem to find anything. HP - A press release in July 2013 talks about HP now offering UC to its SMB customers. Then in Aug 2014 there was another press release practically saying the same thing!! Although this was made out to be new news. So the prestigious list of partners taking to long to get on board is actually a prestigious list of partners who have a