Fedr8 has made significant progress in all areas since its last published update to investors in the Summer of 2016. Fedr8 has been surprised by the pace and scale of the addressable market, customers are moving quickly towards the Fedr8 proposition and doing so with significant numbers of applications.
The key points and developments are;
Fedr8 was awarded Gartner Cool Vendor status earlier this year when the product was still pre-revenue. Gartner is a globally recognised research company in the technology sector.
First contract signed and first payment should be received in March, the customer operates on 90-day payment terms.
This first monthly subscription payment is expected to be between £30,000 and £50,000. This figure is expected to grow as the customer rolls out Fedr8’s software across their global application estate.
At RRP (Recommended Retail Price) Fedr8’s first customer has been quoted a rate of £6000 per application per year. It is anticipated that this contract will be a 3-year deal for up to 6000 applications.
There are now several banks that have contacted Fedr8 and have been qualified by the sales team, the most advanced of which has circa 3,000-4,000 applications a figure that appears to be the norm in large companies and is not unique to banking.
Fedr8 now has active engagement with one of the two largest global cloud providers and is engaged with them around the use of the Fedr8 software to accelerate the adoption of their platform.
Fedr8 has been approached by a number of Global System Integrators due to the potential cannibalization of their Digital Transformation revenue, in future Fedr8 expects to sell through these global SIs rather than have their customers coming directly to them which is the case at present.
This historic pipeline has been built from inbound enquiries as up until the last two months Fedr8 did not have any fulltime sales staff, more recent additions to the pipeline have been generated by two senior sales hires, Richard Beckensall, ex-financial services for IBM and Derek Ward, ex Executive Vice President Atos.
Fedr8 expects the pipeline to continue to grow significantly and quickly over the coming weeks.
Derek Ward has also joined the Board and is assisting with high level corporate strategy and sales delivery.
Fedr8’s machine learning software suite continues to attract press interest and has been awarded Little British Battler Status by TechMarketView, an award which identifies and promotes British based technology companies which are developing enterprise sales strategies for their technologies.