WANdisco |
Deepening the Oracle partnership |
Oracle partnership |
Software & comp services |
1 February 2022 |
Share price performance Business description
Analysts
WANdisco is a research client of Edison Investment Research Limited |
WANdisco (WAND) has announced a deepening of its longstanding partnership with Oracle, whereby Oracle will provide fully funded access to WANdisco LiveData Migrator. Oracle will purchase the licences directly from WANdisco for migration projects and WANdisco’s statement highlights that there is a large, defined pipeline that Oracle intends to pursue this year. Oracle is the sixth largest cloud data provider, albeit a long way behind Amazon, Microsoft and Google (with which WANdisco also has partnerships). However, if Oracle succeeds in bringing a proportion of its huge installed base across database technology, ERP and CRM to the Oracle cloud, then the opportunity for WANdisco should be significant.
Year end |
Revenue ($m) |
EBITDA* |
EBIT* |
EPS* |
EV/sales |
EV/EBITDA |
12/19 |
16.2 |
(11.7) |
(18.5) |
(38.8) |
13.5 |
N/A |
12/20 |
10.5 |
(22.2) |
(28.5) |
(57.3) |
20.7 |
N/A |
12/21e |
6.0 |
(29.2) |
(35.4) |
(59.3) |
36.4 |
N/A |
12/22e |
10.0 |
(24.7) |
(29.9) |
(50.1) |
21.9 |
N/A |
Note: *EBITDA, EBIT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
WANdisco has announced a deepening of its longstanding relationship with Oracle, whereby Oracle will fully fund access to WANdisco’s LiveData Migrator. According to the agreement, Oracle will purchase licences directly from WAND for its customers to accelerate data migrations to Oracle Cloud Infrastructure (OCI). The licences will continue to be based on a consumption model where customers will either pre-buy or commit to consume a certain amount of data, and standard licence pricing will continue to apply.
This announcement by Oracle demonstrates the value of getting data into the cloud, an area of emphasis. A recent Oracle press release emphasised that more than 1,000 global organisations use Oracle’s services to migrate to OCI, including global firms such as Ingersoll Rand, Volvo Group, Accenture. To support this growing demand for migrating enterprise data from on-premises and other clouds to OCI, Oracle is enhancing its service offerings with new capabilities such as LiveData Migrator. This deal and Oracle’s press release seem to be a strong endorsement of WAND and LiveData Migrator, especially since Oracle is now directly buying the product for its own customers. Oracle has also highlighted that it has about 100k cloud customers and if even a small percentage of them convert to LiveData Migrator, it should generate a significant opportunity for WAND.
Deal flow continues to come through a diverse range of partners, use cases and industries, with this announcement following a win with a US investment bank via the IBM partnership, and another for an unannounced amount with a top five UK bank to migrate data to AWS. However, we are not updating our forecasts at this point, as we want to see evidence of Oracle customers migrating to OCI and deals signed more consistently to prove WAND’s economic model. That said, this is an encouraging sign and a significant opportunity if Oracle can bring a large installed base over.
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