Iomart cashes in on cloud computing

WEBSITE hosting firm Iomart has won a string of contracts worth a total of £1.8 million as "cloud computing" reaches a tipping point, according to chief executive Angus MacSween.

Cloud computing allows users to access programs and data remotely over the internet rather than having all their applications stored on their stand-alone PC or laptop.

MacSween said: "(The technology] has reached a tipping point, having significantly moved through the early adopter phase over the past six months.

"Almost every company, regardless of sector or size, that we speak to is considering either a full or part-cloud solution for their IT needs."

Recent contract wins have included GMG Radio - which owns stations such as Real Radio, Rock Radio and Smooth Radio - and London-listed business services firm Office2office.

Peel Hunt analyst Paul Morland predicted full-year turnover for Glasgow-based Iomart of 25.1m, up from 18.3m, with adjusted pre-tax profit rising from 1.8m to 3.1m.

Morland added: "Cloud computing trends are driving customers towards Iomart's managed services offering such that we now see a good chance that our full-year 2011 forecasts are too low. Iomart is ideally positioned to benefit from this trend towards cloud computing. We leave our forecasts unchanged, but see a good chance of upgrades in early April."

Iomart will deliver an update around its year-end on 31 March.