Building on record quarterly revenue, Aussie innovator Nexion has established a hyper-connected cloud services network that sets it apart from all the other competitors.
It’s been called the next stage of evolution in Information Technology, but the dramatic growth of cloud computing is proving to be something more akin to a revolution.
And as an IT provider which offers fully publicly integrated data storage as a service – to form a hybrid cloud – it’s a revolution Nexion is right in the middle of.
“From each according to his ability, to each according to his need…”
At the enterprise level, the Cloud has saved trillions of dollars by enabling companies to scale up or down according to their computing requirements on a need-to basis.
For smaller businesses, it’s allowed a flexible technology infrastructure they couldn’t possibly have previously imagined at a cost they couldn’t dream of.
For the Aussie-based cloud provider, the world’s transition into the Cloud has made the company into one of the leading players on the ASX.
Since listing on the ASX in 2020, Nexion (ASX:NNG) has consistently punched way above its weight, partnering with global giants to bring its customers a one-stop ‘hybrid’ cloud service.
Nexion CEO, Paul Glass, said the WFH phenomena brought about by COVID has accelerated the transition into Cloud and significantly increased the company’s addressable market.
“The cloud adoption in large enterprises has been happening for a number of years, and what the pandemic did was make it a more household name,” Glass told Stockhead.
“We’re an Australian headquartered company, but we’ve now got access across 65 countries, via our own Perth DC connected to global SDWAN provider Aryaka. So the addressable market for us is each one of those 65 countries.”
Hyper-connected cloud provider
Glass explained that Nexion is not just a simple connection to the cloud, but an integrated hyperconnected ICT (information and communications technology) services provider.
“What makes us different is that if a company wants to connect an office in London, New York, Australia or wherever it may be, we not only provide the cloud, we also do the network connectivity. Let’s be honest, without connectivity, the Cloud does not work,” he said.
“So our focus is to provide wholly integrated network cloud security solution, and that’s really what makes us different.”
The company is leading the market in embracing the global trend towards long-term enterprise Cloud services contracts, instead of one-off contracts for one-off solutions.
As a result, Nexion has been able to deliver strong results quarter after quarter, with the latest quarter proving to be the best since its inception in 2017.
The company is competing with the likes of NEC Australia, who has just announced the launch of its cloud product Sora in Australia, targeted at government and enterprise organisations.
“We do compete with those larger competitors, but instead of following others in the market, we’re forging our own global marketplace,” Glass said.
“I’m not aware of any other Australian headquartered company that’s building out a globally hyper connected cloud solution like Nexion.”
Expansion strategy takes shape
Nexion’s global expansion plan and strategy is starting to take shape after only being listed for one year.
The company’s strategy has been to form key partnerships with significant players – like the partnership it’s formed with IBM Global Technology Services to provide its hybrid cloud solutions in New Zealand and Western Australia.
It also has an agreement in place with global player Aryaka to add to the Perth and Sydney node and add an SD-WAN network node in Auckland, as well as a deal with US-based Fortune 500 company NetApp to bring NetApp’s Keystone Storage-as-a-Service solutions product to the ANZ market.
“We also now do satellite after acquiring Blue Sky Telecom, which means that we’re able to extend that cloud over the network to remote locations with satellite,” explained Glass.
“Again, I’m not aware of any other companies that are doing it to the integrated secure global scale we are now with the satellite connectivity.”
Blue Sky has indeed been a good purchase for Nexion, with the last quarter result showing that the integration has produced well over 90% increase in the company’s recurring revenue base.
The merger with Blue Sky also saw cost elimination synergies that have resulted in a margin increase for Nexion to 44%, up from 21% on the previous financial year.
Enterprise growth
The following quarter will be about continuing on the path of expansion, with focus on revenue growth in the enterprise space, says Glass.
“With the opening of the borders, the Nexion team is finally ready to go and meet the peers and enterprise customers at the end of March,” Glass said.
“We want to get enterprise customers who want to do their entire cloud network with one provider, so our focus is winning those large enterprise clients that we’ve already lined up.”
