Total bookings for the six months ended 30 June 2018 decreased to $9m from $10.2m for the previous corresponding period. Big Data bookings secured for WANdisco Fusion fell to $6.2m (H1 2017: $7.0m) and Source Code Management bookings dropped to $2.8m ($3.2m).
During the period, WAND secured three strategic deals with high profile Microsoft customers in banking, semiconductors and retail. The company believes that annual recurring revenues from all the three deals have substantial growth potential.
In its H2 trading update, WANdisco’s has announced that it has expanded its OEM agreement with IBM to integrate Fusion into the relational database, IBM BigSQL (and other products). The broadening of this agreement to cover structured data products as well as unstructured significantly increases the scope of this relationship. In addition, WANdisco will now receive a 50% royalty from IBM’s Fusion sales (previously 30%) with a guaranteed annual royalty commitment, reflecting the strategic importance of this partnership to IBM and the strength of WANdisco’s IP.
David Richards, CEO and Interim Chairman of WAND, commented: “We are delighted to deepen and broaden our relationship with IBM. We have increased the royalty payable to WANdisco and agreed to joint development that significantly expands our opportunities to leverage the IBM Channel.”
The OEM agreement with Microsoft (signed in March) yielded its first three deals: one with a major bank to enable hybrid cloud, one with a semiconductor company and one with a major retailer that has used Fusion to support a migration from Amazon AWS to Microsoft. The breadth of vertical markets and use cases demonstrates the broad applicability of Fusion and management believes that all of these deployments have the potential to scale significantly. Unlike IBM, sales via Microsoft and other cloud partners generate recurring subscription revenues, enhancing revenue visibility and require little integration, benefitting scalability.