eg solutions has today announced a deal with “a leading social networking corporation”. The deal is material in its own right, it demonstrates the broad applicability of eg’s software, and suggests that the relationship with Aspect is finally beginning to bear fruit. We make no changes to forecasts, but today’s announcement is a major step forward.
- Customer identity and use case The RNS is populated with a number of details, but not the identity of the customer, although we suggest that the phrase “a leading social networking corporation” leaves little room for doubt. The use case is the management of workflow within the customer’s “service request units” which we assume represent the human review of content “reported” by users. Social networks (even the largest) rely largely on users reporting unacceptable content, which is then checked in relation to policies regarding obscene or inflammatory material.
- Other contract details The deal is for eg’s workforce optimisation software, a product that the group has been successfully selling to clients in the financial services, utilities and business process outsourcing sectors for many years, and which has been more recently adopted by a number of public sector users. The contract size is quoted at up to 4,000 licences (seats), with an initial value of $1m over three years. We assume that this represents the number of staff that the client will deploy to manually check reported content. If this number expands over time, the RNS suggests that the licence fee will also increase. In addition to the software licences, there is also an element of services revenue which will begin immediately.
- Sold via Aspect Finally, it is important to note that the sale has been made through eg’s partner Aspect Software, and is in fact the third deal through Aspect since March (the others being more “normal” deals in the life assurance and health insurance sectors). Given the financial problems at Aspect (which recently underwent Chapter 11 proceedings), it is pleasing to see this level of success.
- The deal is important in a number of ways – the customer will have undertaken a significant evaluation of available technology for a clearly critical aspect of its business, so in addition to a decent financial contribution, the contract has major reference value. Equally, the expansion into new customer types is a clear positive, as is the evidence of emerging success in the Aspect relationship.