Savvis Inc.'s growing cloud revenue is getting a boost from the financial services vertical. Company executives updated analysts during the company’s earnings call for its second quarter ended June 30. Here’s a summary of what they had to say on the managed services front and regarding the cloud market.
Key points to note included:
- Savvis’ cloud business has hit an annual revenue run rate of $14 million. Q2 cloud revenue grew 24 percent on a quarter-over-quarter basis. Savvis’ cloud revenue for the whole of 2009 was $7.4 million.
- Financial services firms are contributing to the uptick in cloud services, as the sector moves away from the mindset of having to own and manage IT infrastructure. Savvis cited a 2Q at a U.K.-based retail bank that involves both traditional hosting services and its Savvis Symphony cloud solutions. The bank deal generates about $345,000 in monthly recurring revenue.
- In February, Savvis reported that its existing media industry customers were showing interest in adopting cloud computing. That pattern continued in Q2: a media firm that had been doing managed hosting with Savvis expanded its relationship with the company to include colocation and cloud services. The three-year deal is worth $30 million.
Bill Fathers, senior vice president and global head of sales and marketing at Savvis, cited a significant increase in bookings in the financial sector during Q2. Financial services represented more than 40 percent of the bookings in the quarter, according to the company.
Here’s a summary of Savvis’ Q2 results:
- Revenue of $221.8 million compared with $219.9 million in last year’s Q2.
- Net loss of $13.2 million compared with net loss of $6.2 million last year.
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