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Instem Shares Rise As Major Client Migrates To Software Platform

7th Mar 2018 13:05

LONDON (Alliance News) - Shares in Instem PLC rose on Wednesday as it said an unnamed chemical product company has adopted the company's software-as-a-services delivery model for accessing solutions through the Instem cloud.

Shares in the healthcare-focused information technology applications provider rose 25% at 235.00 pence on Wednesday.

The annual recurring revenue from the client will immediately increase by over 40% and the shift towards the SaaS based revenue model will see a continued improvement of earnings visibility for the company and deliver an expansion in operating margins.

Clients on the SaaS platform will have faster access to new product releases and shared services.

In addition, Instem reported that it has been certified to the international standard for information security management systems, ISO 27001, a significant component in ensuring internal and client compliance with the EU General Data Protection Regulation which becomes law on May 25.

"The strategic process of migrating clients from on-site installations to our market leading SaaS model continues apace. This latest agreement with a leading chemical client sees Instem deploy its Provantis product from its own secure cloud services environment, as opposed to the client's own data centre, thereby reducing their cost of ownership while improving Instem's software deployment and management efficiencies," said Chief Executive Officer Phil Reason.


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INS.L
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Value8,809.74
Change53.53