Instem plc SaaS Business Update (9062G)
March 07 2018 - 2:01AM
UK Regulatory
TIDMINS
RNS Number : 9062G
Instem plc
07 March 2018
7 March 2018
Instem plc
("Instem" or the "Company")
SaaS Business Update
Growing demand for Instem's Software-as-a-Service ("SaaS")
delivery model
Instem plc (AIM: INS), a leading provider of IT solutions to the
global life sciences market, announces that one of the world's
largest chemical products companies is the latest customer to adopt
the Company's market leading SaaS delivery model for accessing its
solutions via the Instem Cloud. Annual recurring revenue from this
client will immediately increase by over 40%.
The growing shift towards the SaaS based revenue model will see
a continued improvement of earnings visibility for Instem and will
ultimately deliver an expansion in operating margins in-line with
similar cloud-based delivery models.
Originally developed to attract new clients, this latest client
to adopt the Company's SaaS approach has been using Instem's
Provantis(R) software for more than 12 years and represents the
growing trend to move from on-site installations to the Company's
highly secure, cloud-based SaaS offering.
Instem's SaaS Platform
Instem's SaaS clients enjoy a reduced IT burden, flexibility and
scalability to meet their changing needs, giving them faster access
to new product releases and high quality shared services that in
turn deliver an enhanced customer experience in terms of lower
total cost of ownership, rapid implementation and high
reliability.
Instem's professionally managed online platforms are run from
centralised state-of-the-art third-party data centres, which can be
accessed from any location that offers connectivity to the
Internet, 24 hours a day, seven days a week, and are currently
being used every day by drug developers, contract research
organisations, universities, research institutes and government
agencies around the world.
SaaS Impact on Quality of Earnings
The 40% increase in recurring revenue from one client is typical
of Instem clients converting from on premise to SaaS deployment.
With GBP3.4m of existing SaaS revenue and GBP9.6m of non-SaaS based
recurring revenue, procured on an annual basis, reported for the 12
months to 30 June 2017, there remains a significant opportunity to
achieve material increases in SaaS based revenue recognition over
the next few years as clients make the transition.
ISO 27001
With an ever-increasing volume of high-value client data under
its control, Instem has been independently certified to the
international standard for information security management systems,
ISO 27001. This is another unique differentiator for Instem in a
market environment that has become highly focused on information
security. The newly awarded certification to ISO 27001 is also a
significant component in ensuring both internal and client
compliance with EU General Data Protection Regulation ('GDPR')
which becomes law on 25 May 2018, which we believe is another
reason why customers are switching to Instem's SaaS cloud delivery
platform.
Phil Reason, CEO of Instem plc, commented: "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(R)
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."
"The transition to SaaS across the regulatory life sciences
industry has been quickening in recent months after initial
concerns over data security and the generally conservative nature
of the participants. However, both existing clients and new
prospects are now fully recognising Instem's leadership in this
area and with GDPR coming into effect in May of this year we
anticipate strong growth in SaaS revenue."
For further information, please contact:
Instem plc +44 (0) 1785 825 600
Phil Reason, CEO
Nigel Goldsmith, CFO
N+1 Singer (Nominated Adviser
& Broker) +44 (0) 20 7496 3000
Richard Lindley
James White
Rachel Hayes
Walbrook Financial PR +44 (0) 20 7933 8000
Paul Cornelius instem@walbrookpr.com
Sam Allen
Helen Cresswell
About Instem
Instem is a leading provider of IT solutions & services to
the life sciences market delivering compelling solutions for Study
Management and Data Collection; Regulatory Solutions for
Submissions and Compliance; and Informatics-based Insight
Generation.
Instem solutions are in use by customers worldwide and enable
our clients to bring life enhancing products to market faster.
Instem's portfolio of software solutions increases client
productivity by automating study-related processes while offering
the unique ability to generate new knowledge through the extraction
and harmonisation of actionable scientific information.
Instem supports over 500 clients through offices in the United
States, United Kingdom, France, Japan, China and India.
To learn more about Instem solutions and its mission, please
visit instem.com.
About Provantis(R)
Provantis(R) is a modern, fully integrated Windows-based system
for organisations engaged in non-clinical evaluation studies.
This information is provided by RNS
The company news service from the London Stock Exchange
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