Cloud software platform Dropsuite (ASX: DSE) has unveiled a means of generating an immediate revenue boost, courtesy of a partnership with 1&1 IONOS, one of the world’s largest web hosting and cloud providers for small and medium-sized businesses.
1&1 IONOS is a division of United Internet Group which owns a basket of brands including internet service provider, mobile subscription and website and email hosting services in Europe and the US.
Droposuite anticipates the partnership will contribute positively to its annualised recurring revenue (ARR).
Dropsuite’s primary service is enabling organisations to backup, recover and protect their important business information.
Moreover, the company’s network of preferred re-seller partners has a combined customer reach of millions of businesses worldwide including the likes of internet giant GoDaddy, the world’s largest domain name registrar, and Ingram Micro, the world’s largest distributor of computer and technology products.
Meanwhile, 1&1 IONOS currently sports close to 8 million customer contracts and over 12 million domains with Dropsuite declaring that the partnership is now “live and already generating annualised recurring revenue”.
From partnership to commerce
Under the terms of the agreement, Dropsuite provides 1&1 IONOS customers with easy-to-use, affordable and fully automated email archiving and backup functionality, and importantly, ensures these customers comply with stringent EU data regulations.
“This again reinforces our leadership position in the data protection and compliance sector globally which has ever-growing regulatory requirements and constantly evolving cybersecurity threats. This is why our solution in demand globally,” said Charif Elansari, managing director of Dropsuite.
Dropsuite said the two companies have created a “seamless 1&1 IONOS-branded customer experience”, that simplifies email archiving and ensures it can be easily added to existing customer accounts or bundled with existing products.
One of the unique selling points of their combined tech solution is that Dropsuite is being deployed on a private cloud to ensure all user data and applications are hosted in United Internet Group data centres.
Furthermore, the Dropsuite solution includes compliance tools for General Data Protection Regulations (GDPR) and other German regulations, as well as eDiscovery, legal hold, flexible retention periods and “tamper-proof audit trails”.
“Dropsuite is ideal for Data Protection Officers (DPOs) who need to be empowered with tools to help them navigate the grey areas where GDPR compliance meets businesses compliance,” the company said.
According to EU regulations, firms who use email to communicate with EU prospects, customers and business partners must comply with GDPR privacy and data access mandates, with a hefty €20 million fine levied if they fail to do so.
The GDPR regulations came into effect on 25 May 2018 with many firms still struggling to establish full compliance.
“This is yet another firm step in our renewed growth and further evidence of ARR diversifying,” Mr Elansari said.
“We are well on track to deliver on our previously stated forecast of between $4.8 million to $5 million ARR by December 2019. User numbers are now steadily tracking up and Dropsuite is again entering a growth phase characterised by a more stable and diversified increase in new users from a broader suite of top-quality partners,” he added.
The managing director also hinted that Dropsuite would be announcing additional partnerships in the near future and would provide full disclosure regarding financial performance as a result of its existing deployments.
This morning’s news lifted Dropsuite shares by almost 38% up to $0.051.