Cloud revenues top £2m

Award-winning IT hosting company, Memset®, have today announced that its cloud sales have topped $2m per year. Cloud operations represent 36% of Memset’s business, with revenues from their Miniserver VM® virtual servers and Memstore TM cloud storage up 49% on Q2 2011. Excitingly the Company's total revenue run rate soared through the £300k/month ($470k/month) milestone in the last quarter, with total bookable revenues up 36% since Q2 last year.

Memset has been benefiting from soaring demand for cloud computing infrastructure as a service, which allows users to run programs and store information remotely, eliminating the cost of operating the equipment themselves. Memset are predicting continued strong growth for their cloud services in the coming year.

Kate Craig-Wood, MD of Memset, said: “We currently host one of the largest VM deployments in Britain. We own our own intellectual property, based on open source software with extensive in-house additions, which enables massive automation of our infrastructure and business operations without the encumbrance of license fees. Our technology is very scalable, allowing us to generate good profits - which we predominantly recycle as growth capital - while retaining our position as price leader in the marketplace.”

Memset now boasts 2,900 customers, up 16% on the end of Q2 2011. This disparity between revenue and client count growth further demonstrates the "sweet spot" in which the company finds itself; with increased spend by existing clients supplementing new business.

Memset hosts 20,000 of Britain’s largest and busiest websites, and provides infrastructure for businesses of all sizes and sectors, including Debenhams, BBC, Hilton Hotels, Lush, TrueKnowledge.com and Taste Card.

"So far 2012 has been a good year. We are on track to achieve our 2012 revenue forecast, which should deliver strong growth similar to last year, but we remain committed to managing our growth rate so as to ensure our quality of service does not suffer.", Craig-Wood said.

Now emboldened by substantial accumulated profits and a new leasing arrangement Memset is making significant investments; dramatically scaling up their cloud infrastructure to enable cloud bursting and going after public sector work via the G-Cloud framework. They are also continuing to invest heavily in research and development, with a number of new products due out in the coming months.

Memset has achieved its growth organically from an initial investment of £2,000 in 2002 by brother and sister founders Kate and Nick Craig-Wood. It remains a family business and they have sold no equity.