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Manalto tracks cloud software commercialisation as markets expand

Manalto is benefiting from improved exposure for its Soshlr social media management product as a distribution deal with a European partner commercialises the software ahead of a spending boom in this technology sector.
Manalto tracks cloud software commercialisation as markets expand

Manalto’s (ASX:MTL) social media management product Soshlr has been commercially integrated into the business of a key Luxembourg-based distributor, opening sales of Manalto technology to more than 350 international partners.

Manalto secured LuxCloud as a distribution partner last month, making Soshlr available to a broad partner base of hosting companies and telco's.

These include HOT Telecom (Israel), Hosting.co.uk (UK), Protagonist (Netherlands) and TechnoMania (Lebanon), who then sell to a suite of small to medium-sized enterprises (SME).

This development builds on a number of agreements to increase exposure to Manalto’s cloud-based services, including deals with Netherlands-based cloud solutions company Top Cloud XL, Ireland’s largest domain registrar and hosting company Blacknight and U.S.-based cloud service commerce leader AppDirect, which powers the largest network of marketplaces in the sector, reaching about 30 million small businesses worldwide.

Manalto now has access to an addressable market in excess of 5 million SMEs currently trialling Soshlr.

LuxCloud represents the first of these distribution clients to commercialise and make Soshlr available via its cloud store.

This represents an important step forward for Manalto marketing as SMEs follow an increasing trend of purchasing bundled cloud-based business applications from resellers.


About Soshlr


Targeted at SMEs, Soshlr delivers time savings and single visibility of social media activity across Facebook, Twitter, LinkedIn and Instagram.

The purpose-built product is packaged and provisioned for resellers such as service providers, telecommunications companies and hosting companies, with upsell paths in a range of A$36 to $3,000 per annum.

In a macro sense, its development is supported by trends in the global hosting industry which signal a growing imperative to add revenue streams with cloud-based business applications.


Market support

The commercialisation of Soshlr under LuxCloud builds on market confidence in Manalto technology recently demonstrated by the placement of 44.2 million shares at A$0.07 to sophisticated and professional investors.

Shares in Manalto were last trading at $0.075.

Funds raised from the placement are to be applied to the continuing day to day operations of the company as working capital.

Manalto will also launch a share purchase plan at the same price per share which could raise up to $1.9 million.

New commercial deals for Manalto have expanded its presence across the UK, Europe, Asia, North America and Australia as forecasts have called for social media marketing spending in the U.S. alone to increase from a level of US$7.5 billion in 2014 to US$17.3 billion in 2019.


Analysis

The commercialisation of Soshlr represents an important milestone in Manalto’s product rollout via distributors to SMEs since it amplifies an ability to deliver practical demonstrations of the software’s effectiveness as well as name recognition and the general advantages of widespread market exposure.

This development positions Manalto to benefit from projected growth in SME cloud services spending from US$25.5 billion in 2015 to US$35 billion in 2018.

By 2017, social network ad spending will reach US$36 billion, representing 16% of all digital ad spending globally.

Business applications sales are also expected to increase from US$6.3 billion in 2015 to US$12 billion in 2018.

Manalto’s ability to anticipate this boom by signing on with an expanding base of international commercial connections has helped underpin important investor support, as evidenced by the strong A$3.1 million capital raising last month.

Future price catalysts for Manalto stock may materialise as commercialisation is achieved with other distributors and an ongoing share purchase plan unfolds.


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Manalto Timeline

Newswire
February 02 2017

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