At this point, we’ve all heard of the cloud. While cloud computing was believed to be invented in the mid-to-late 1900s, it wasn’t until around 2008 when this form of computing made its way to the mainstream, changing how we store, manage, and calculate data. Today, the cloud is all around us and some companies, like 8K Miles Software Services Ltd (NSE: 8KMILES) are emerging in leadership positions, creating compelling investment opportunities.
What Is 8K Miles Software Services?
Founded in mid-2008, 8K Miles Software Services is a cloud computing company with over a decade of experience. The company is primarily focused on bringing cloud computing services to the healthcare, pharmaceutical and life sciences industries. In fact, the company boasts clients that are top 10 pharma companies in the United States and Europe. The company is also responsible for providing its cloud services to more than 60 United States Healthcare Providers.
There’s a good reason that leaders in the healthcare, pharma and life sciences industries chose 8K Miles Software Services. The company have an incredible gammat of high-quality products and services that have been designed to help its customers navigate complex Government Security and Compliance Regulations like HIPAA, GxP, SOX, GDPR and many more. Through the use of artificial intelligence (AI), the company ensures that all of its customers remain compliant with all regulatory rules associated with its industry at all times.
A Trusted Partner To Google (GOOG), Amazon Web Services (AWS) (AMZN), and Microsoft (MSFT)
As mentioned above, 8K Miles Software is not new to the cloud computing industry. In fact, with its foundation in 2008, the company became one of the first to capitalize on this emerging market. As a result, through its unique offerings, dedication to its customers, and industry-specific technological innovation, the company has been a Certified Microsoft Cloud Gold Partner for 2 years in a row. It has also held certification as an AWS Nextgen MSP (Managed Service Provider) for three years running. Finally, 8K Miles has cemented its position as a recognized cloud partner of Google.
What’s 8K Miles’ Edge?
Any time I dig into a company as a potential investment opportunity, I like to look for the edge. That one factor that sets the company apart from any other provider in its industry, creating an opportunity to take a lion’s share of the market in which it operates. In the case of 8K Miles, that wasn’t hard to find at all.
In the cloud-service industry, most companies take a people-centric approach. In general, these companies offer the same services offered by their competitors, with some kind of twist. Essentially, these companies are people-centric, meaning that as they grow, they must hire more people in order to provide the services they provide to their customers. Of course, this opens the door to competition, forcing these companies to compete with the hourly rates of other IT vendors. 8K Miles Software takes differentiated approach.
The company’s core product, CloudEZ is an all inclusive transition to the cloud. Essentially, the service handles the transition, management, regulatory compliance, and security without the need for expensive infrastructure or overwhelming hourly rates.
Instead of focusing on the people-centric business model and attacking all industries, 8K Miles Software Services has a product-centric business model. This means that the company creates products that are designed for a specific industry. In doing so, the company uses artificial intelligence as a means to scale, rather than creating a need to hire more people at every growth point. As a result, the company’s services are more in tune with the customers they serve and it has no need to compete with the hourly rates offered by other services.
In fact, I recently had the opportunity to speak with Suresh Venkatachari, Chairman and CEO at 8K Miles. In the conversation, one of the most interesting statements made was that “8K Miles Software Services was born in the cloud.” The statement pointed to the fact that the company’s cloud computing services are developed with the use of Artificial Intelligence that gives the company a competitive advantage.
The Next Big Shift In Medical Record Keeping Could Be Led By 8K Miles Software
8K Miles has a compelling offering as is. However, through a recent partnership, the company could be the driving force in a shift in how we look at medical record keeping. Decades ago, medical records were kept on paper. Then, the computer made it possible for medical records to be kept electronically, known today as Electronic Medical Records or simply EMR. The next leap forward in record keeping could come from 8K Miles Software Services.
The company recently partnered with world-leading EMR platforms. Under these partnerships, the company is working to launch its Platform as a Service (Paas) by hosting the partner platform on the Public Cloud, ensuring top-level security and HIPAA Compliance in the process.
This will greatly reduce costs for hospitals, and has the potential to bring small and mid-sized hospitals into today’s age of technology. At the moment, EMR is tricky business. It requires expensive dedicated Health IT infrastructure.
Through 8K Miles Software’s coming PaaS product, the need for expensive dedicated Health IT infrastructure is erased. All necessary infrastructure will live in the cloud, greatly reducing costs. Not only could this be a key benefit to large hospitals, it could provide small and medium-sized hospitals access to EMR technology that was previously out of reach. In my opinion, this could prove to be a revolutionary change that not only leads to better medical record keeping but proves to be a strong opportunity for 8K Miles and all involved.
Bringing Blockchain To Healthcare
Blockchain is an evolving technology that has the potential to change the shape of many industries from financial to retail to healthcare and more. 8K Miles is on the leading edge of innovation when it comes to bringing blockchain to the healthcare industry.
In fact, the company has created an incredible patient resource that lives on the blockchain. This resource is known as 8K Health Edge. 8K Health Edge takes a patient-centric approach, having the patient as the central and primary focus of the Blockchain technology. Ultimately, this gives the company the ability to provide a platform that represents medical history of individual patients more effectively. Of course, 8K Health Edge is highly complementary to the efforts the company is making with regard to innovation in EMR.
8K Miles Had An Impressive 2017 Year
Through their unique product offering, 8K Miles Software Services has seen compelling growth. With fiscal 2017 being a momentous year for the company. During the year, the company saw revenue growth of more than 60% on a year over year basis, smashing through a key revenue milestone of $100 million in a single year. Here are some key factors that led to this incredible growth:
- Top 10 Clients – During the year 2017, about one third of the company’s revenue came from its top 10 customers, who continue to expand services with 8K Miles as it proves its worth through the services it provides. These top 10 clients have increased their spend on 8K Miles by a collective 34% throughout the year.
- Managed Services & Recurring Revenue – In 2017, 8K Miles generated exceptional growth in managed services and recurring revenues. In fact, when compared to fiscal year 2016, the company’s managed services and recurring revenue grew by four times.
- The $1 Million Club – Finally, the company added 10 new clients to what I like to call its $1 million club. These are clients that generate more than $1 million in revenue over the course of the year. Today, 8K Miles’ $1 million club consists of more than 30 customers.
- Access To A Massive Market – Finally, in May of 2017, 8K miles successfully closed the acquisition of Cornerstone Advisors. As a result, the company was able to engage an entirely new set of potential clients, Hospitals in the United States. As a result, the company is seeing remarkable growth in Healthcare Cloud accounts, setting the stage for significant revenue growth in the years ahead.
The Market Opportunity Is Incredible
While 8K Miles Software Services has a strong product offering, that means little if the market opportunity is a small one. The good news is that this is not the case. Not only are the cloud and blockchain markets relatively large as is, they are expected to grow significantly ahead.
- Gartner – Gartner estimates that Cloud IaaS Revenues could climb from $41 billion in 2018 to $84 billion in by the year 2021.
- The Global Blockchain Healthcare Market – According to BIS Research, It is expected that the Global Blockchain Healthcare market will grow from $176.8 million in 2018 to $5.61 billion by 2025.
8K Miles represents a compelling opportunity in my view. At the moment, we are living in the days of a technological renaissance. Technology is changing the way we see, hear and experience the world. In the face of this renaissance, I believe that those who will be most successful are those who not only embrace this change, but who become innovative bodies within it. In my view, 8K Miles is one of those companies. While blockchain is quickly spreading into various industries, at a estimated market value of under $200 million in 2018 it is in its infancy. 8K Miles is on the leading edge of innovation in this space, that is expected to be worth more than $5 billion by 2025. Also, by creating products that not only reduce costs for larger players in the healthcare market, but provide access to the cloud for smaller hospitals and other healthcare companies, I believe that 8K Miles Software Services has done well carving a niche and taking its niche by storm. All in all, I’m expecting to see growth ahead for 8K Miles.
This article was originally featured on CNA Finance.