OUT.L Regulatory News (OUT)

24 July 2014

Outsourcery plc

("Outsourcery" or the "Group")

New Customer Win by Key Partner

- Significant enterprise end-customer win -

- MRR of £70,000 -

Outsourcery (AIM: OUT), a world-leading Cloud Services Provider ("CSP") that helps organisations of any size to reduce costs, increase productivity and work better, is pleased to announce a contract win with a significant new end-customer via one of its key partners.

The first significant contract win by a key partner has a five year term and during which time it is expected to deliver at least £70,000 in monthly recurring revenue (MRR) or £840,000 annually once fully deployed. We expect MRR to reach approximately £10,000 by the year-end with full roll out expected during Q1 2015. The opportunity exists to further grow this figure, in time, should the end-customer choose to exploit additional services. A one-off and non-recurring revenue item of approximately £40,000 for the design and integration phase of the contract is expected to be recognised over the next few months.

The solution roll-out will include an initial mix of Lync instant messaging and presence as well as enterprise voice services, with a plan to migrate all users from traditional telephony to enterprise voice services over time.

The Lync solution is being deployed as the primary unified communications toolset for the end-customer, supporting front and back office functions, with the ultimate aim of providing improved communication and collaboration capabilities across the organisation. Outsourcery and its partner have provided an innovative hybrid cloud solution enabling integration with existing solutions that forms part of a wider service delivery relationship with the partner.

Commenting on the win, Outsourcery Co-Chief Executive Piers Linney said:

"We are extremely pleased with this significant deal which validates our strategy, our investment and the ability of our partner-model to convert material enterprise opportunities. Being able to work with our partners to provide such solutions further reinforces our position as the UK leader in the delivery of cloud-based Microsoft unified communications and our potential for growth.

There is a significant revenue opportunity ahead as the Microsoft business installed base moves to the cloud with new services such as Lync creating new and disruptive market opportunities. We have a growing visibility of pipeline for such enterprise deals as well as mid-market deals across our strategic partner network which is key for us in generating a strong recurring revenue stream."

For further information please contact

About Outsourcery

Organisations are increasingly considering how best to implement and use cloud services, but many still don't fully understand the cloud's potential - or how to access it effectively. Outsourcery helps organisations of any size to make sense of the cloud, working to change the ways in which they consume IT, enabling them to expand, save money and work better.

Outsourcery's services remove the need for organisations to own and manage expensive in-house, on premise IT systems, unified communications, conferencing services, video applications and IT infrastructure. Channelled through an extensive network of trusted partners, Outsourcery's end-customers range from ambitious start-ups to leading FTSE-100 companies.

Outsourcery has one of the broadest Microsoft-based cloud service offerings available today. It covers hosted software applications (software-as-a-service), virtualised servers (infrastructure-as-a-service), next generation unified communications and collaboration solutions as well as connectivity and professional services that help to customise and integrate solutions for partners and customers alike.

Outsourcery was the first company outside of the US to be named Microsoft's worldwide 'Hosting Solutions Partner of the Year' and is a Microsoft Certified Gold Partner with a total of eight competencies, of which three are gold and five are silver.

Outsourcery is a founding member of the Cloud Industry Forum, which sets standards for quality and transparency within the fast-growing cloud industry. The company also adheres to rigorous quality practices, holding ISO 27001, ISO 9001 and ISO 14001 accreditations, ensuring the highest levels of service, environmental standards and information security. Outsourcery is able to deliver 'Official' accredited solutions and is currently working in partnership with Microsoft and Dell to develop a separate secure cloud platform, giving Outsourcery the ability to deploy accredited solutions for central government, enabling the public sector to benefit from the cloud. Outsourcery employs 120 staff based in three UK offices, operates two UK data centres and was the UK's first certified carbon neutral CSP.

www.outsourcery.co.uk