Nexion Group Signs Deal with IBM — Share Price Up 11% (ASX:NNG)

Last week I talked about 5G Networks’ big government win. With the company announcing a commitment from the SA government for ongoing development of their cloud capabilities.

A sign of the times, you could call it.

Just another example of the ongoing digitisation we’re seeing from both the public and private sector.

Well, today we’ve got a similar story. This time though, it’s IBM who are dishing out the contracts. They’ve signed up a local small-cap known as Nexion Group [ASX:NNG] to help them deploy infrastructure and service support for their new project in WA…

60-month contract for a big build

According to Nexion, this deal with IBM is a multimillion-dollar one. Which has been signed for a 60-month term (five years).

Beyond that though, neither company has come forward with any major details. No doubt trying to keep these plans secretive for whatever reason.

However, Nexion did divulge some of the products that the company will be providing. Including: OneCloud IaaS (infrastructure as a service), Network links, SIP (signalling protocol), and security/desktop support including managed services.

All in all, a fairly large project by the sound of it. Which is to be expected of a company of IBM’s stature.

And Nexion is well aware of that, as COO Kevin Read notes:

We are excited to be working with IBM, a recognised global technology leader.

This deal helps underpin our global growth strategy based on key partnerships and to have a       company of IBM’s caliber select Nexion is a phenomenal outcome. Hybrid Cloud is one of the            fastest growing cloud segments and NEXION is proud to be an emerging global cloud,
security, networking and data centre player.

For Nexion shareholders, this is indeed an ideal start too. With the company only making its debut a week from today.

The kind of performance that every investor and stock dreams of. A benchmark that they’re going to have to work hard to maintain from here on out.

What’s next for the NNG share price?

Long term, Nexion’s goal is rolling out this OneCloud technology all over the world. Placing their nodes in strategically significant cities and hubs for a broader network.

Currently though, they’re still working on Australia — with just three nodes located in Perth, Melbourne, and Adelaide. But they’re determined to bring more nodes to other state capitals in the future.

Then, after that, they have their eye on New Zealand and beyond. With their global ambitions set to be tested in the years to come.

That’s why, for investors, this is definitely a long-term play. A stock that is looking to become as prolific — and hopefully as successful — as IBM itself.

When or even if it will accomplish this though, is very unclear. With plenty of near-term goals to achieve first.

But it is still an intriguing, up-and-coming tech player.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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