OUT.L Regulatory News (OUT)

23 September 2013

Outsourcery plc

Outsourcery to launch new high security IL3 compliant cloud services for UK government based on latest Microsoft cloud technology designs

Outsourcery plc (AIM: OUT, 'Outsourcery'), the pure-play provider of cloud-based IT and unified communications services (ICT), announces that it is taking part in Microsoft Corporation's (NASDAQ: MSFT) initiative to accelerate the offering of IL3 compliant cloud services through its cloud operating systems network. Outsourcery will deploy and manage a new platform to provide secure cloud-based services to UK government and commercial sector organisations with similar security requirements. Microsoft will offer direct technology design and implementation support to this new state of the art platform. This is the first initiative of its kind in the UK market.

The public sector opportunity for Cloud Service Providers (CSPs), such as Outsourcery, is significant as the government transitions to cloud-based services. Outsourcery is already a recognised supplier to the Government Procurement Service, an executive agency of the Cabinet Office, through the G-Cloud Framework, alongside a number of its reseller partners, which provides access to 30,000 public sector organisations. Outsourcery is already ISO 27001 (Information Security) accredited and is capable of deploying 'IL2' accredited solutions, which are typically suitable for local government.

However, UK central government departments can require solutions that are accredited to the more stringent 'IL3' security level, which requires additional security and it to be hosted within UK borders. The UK government has introduced a Public Cloud First Policy mandate, which means that departments are now mandated to consider public cloud first in any IT procurement. It also wishes to see more flexible contracts and the involvement of UK SMEs in the delivery of services.

The government's annual hosting cost is estimated to be worth £2bn and the opportunity for new IL3 based services to address that market and deliver savings is substantial. In order to complement its Public Cloud services Microsoft is working with Outsourcery to support the introduction of an IL3 accredited platform based on next generation technology and hosted in the UK. This will be wholly-owned and managed by Outsourcery.

Unique to the UK market, the platform, a physically separated version of Outsourcery's existing 'O-Cloud' platform, will provide infrastructure-as-a-service, applications including Exchange Server, SharePoint and Dynamics CRM and Lync Server based unified communications with full voice capability. The second phase of the offering will also include data storage, archiving, backup, followed by services for Big Data analytics. As the leading UK CSP, Outsourcery is particularly well-placed to provide the UK government with a complete set of cloud-based offerings.

The platform is due to be launched in 2014 and Outsourcery will be working closely with its existing and new reseller partners, many of which are well-established suppliers to the UK government, on its go to market strategy. Outsourcery is already working on responses to central government tenders with its larger partners that will require IL3 compliance.

Piers Linney, Outsourcery's Co-CEO, said:

"The deployment of an IL3 compliant version of our O-Cloud platform, powered by Microsoft, is a very significant development for Outsourcery and we expect it to represent a material revenue stream by the end of 2015, in addition to our existing commercial sector business. We will provide the UK government (as well as security sensitive commercial sector organisations) the broadest offering of IL3 compliant and fully integrated cloud-based services available in the UK that will span platform, applications, unified communications and Big Data storage and analytics.

"As well as the involvement of Microsoft, our large partners have been asking for such a capability as the government increasingly embraces cloud-based solutions for its ICT requirements."

Enquiries:

About Outsourcery: Outsourcery is a world-leading Cloud Service Provider (CSP) based in the UK. The Company is channel focused and aims to remove the need for businesses of all sizes to own and manage IT, unified communications and video applications and infrastructure. End-customers range from start-ups to FTSE-100 companies.

Outsourcery has one of the broadest offerings of cloud-based services based on Microsoft technology in the world, covering hosted software applications, virtualised servers and next generation unified communications (based on Lync Server) and collaboration solutions as well professional services to customise and integrate solutions for end-customers. Outsourcery was a founder member of the UK Cloud Industry Forum and is ISO 27001 (Information Security), ISO 9001 (Quality Management) and ISO 14001 (Environmental Management) accredited as well as being able to deliver CESG IL2 accredited solutions for the public sector.

Outsourcery was named both Microsoft's worldwide 'Hosting Solutions Partner of the Year' and its worldwide 'Dynamics Hosting Partner of the Year' in 2010. The Company was also one of three finalists for the Microsoft worldwide 'Server Platform Partner of the Year' award in 2013 demonstrating the quality of the Company's O-Cloud platform.

Outsourcery is a Microsoft Certified Gold Partner with a total of six competencies of which three are gold and three silver. Outsourcery employs 120 staff based in three UK offices and operates two UK data centres and was the UK's first certified carbon neutral CSP.

http://www.outsourcery.co.uk