Outsourcery bags £4.2m to support public sector ambitions

Cloud infrastructure specialist Outsourcery raises £4.2m from a new share placement as it builds out a CESG IL3-compliant platform for government work

Cloud infrastructure and UC provider Outsourcery has reinforced its public sector commitment after a new placement of 3.75 million Ordinary Shares raised £4.2m before expenses.

Outsourcery plans to use its new wad of cash to fund the deployment of a CESG IL3-compliant platform, based on its own O-Cloud infrastructure, to help it access new opportunities in public sector deployments.

With government departments now required to consider cloud solutions as a preferred option when procuring ICT – a mandate that is intended to help SMEs get more face time with public sector buyers – Outsourcery said it needed to beef up its compliance around CESG IL3, which requires additional physical security and hosting within the UK.

The firm’s SME O-Cloud platform was launched back in September, and is backed by Microsoft – which is unable to achieve IL3 compliance because it does not host any Office 365 or Azure resources in the UK – and Dell – which is designing and deploying the compute, storage and networking infrastructure.

Outsourcery, which is already a recognised G-Cloud supplier, plans to sell IL3 O-Cloud through its own partner network from Q3 2014, and says it is already working on a number of opportunities.

The net funds raised are to be used for setup costs, including platform design, build and security; funding of anticipated losses through to project break-even; and a contingency slush pile.

Separately, Outsourcery also provided a trading update, saying its MRR was progressing in line with expectations through the second half of 2013, and stood at £500,000 with a good number of both enterprise and SME opportunities expected to bubble to the surface soon.

It hopes to continue to grow revenues in the coming months off the back of strategic partnerships with the likes of Vodafone and Virgin Media Business.

Read more on Security Network Services