|By Business Wire||
|August 22, 2014 05:47 AM EDT||
cloudBuy plc, the cloud eCommerce marketplace, today announced it has won a new contract with an Australian State Government (the “State”) to deliver an eProcurement marketplace for the State’s treasury and IT departments. Once deployed, the new eMarketplace will consolidate existing shared services through a single online platform, delivering financial and efficiency savings. The eMarketplace will also be integrated with the State’s existing SAP enterprise platform, enabling electronic invoicing and purchase order synchronisation.
The first phase of the project, which will run for a minimum six month period initially, will see cloudBuy implement its end-to-end Software as a Service (SaaS) eMarketplace for the State and support the onboarding process of 20 key treasury and ICT suppliers to ensure a smooth migration.
"This is cloudBuy’s first eMarketplace project in Australia and follows earlier contract wins for our Spend Analysis solution in this market,” said Ronald Duncan, Chairman of cloudBuy plc. “As we continue to grow our global footprint, we are in discussions with many similar potential customers who wish to explore the benefits that cloudBuy’s solutions can bring.”
Following the initial set up fees, the terms of the new contract will see cloudBuy receive ongoing revenues via a transactional charge, calculated as a percentage of the value spent within the eMarketplace. Based on the State’s existing procurement card spend, estimated revenues are expected to be approximately $900,000 AUD in the first year, rising to a potential $7.2 million annually over time.
“Traditional annual license fees are becoming increasingly unpopular with SaaS vendors and customers alike who want more flexible payment models based on actual usage and needs,” said Ronald Duncan. “Our new transaction based model, developed in conjunction with Visa, will eliminate annual license costs for customers, whilst for cloudBuy it provides a much closer link between platform usage and revenues generated.”
cloudBuy, formerly @UK, is the world’s leading transactional Cloud Platform with over 1 million users. The platform supports B2B eCommerce and eProcurement across a range of public and private sector organisations providing a secure, controlled transactional environment for B2B trading.
For more information on cloudBuy’s solutions, please visit www.cloudbuy.com
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