Digital Technology International (DTI (News - Alert)) has a long history of technical innovation and business success in the news publishing industry, and in keeping with that tradition, is fast becoming a cloud company.
DTI cloud was launched in 2009 and since then many news media customers have streamlined their operations and moved to its award winning cloud publishing platform. This set the trend for Digital Technology transforming itself into a Software-as-a-Service business. It now supports thousands of users in the news media industry.
“Our rapid transformation into a cloud company has made it necessary to change our cost structure to align with our revenue model. The demand for DTI Cloud has actually created the largest revenue backlog in the company’s history,” noted Dan Paulus, president, DTI.
The company experienced record-setting growth in DTI Cloud in 2012. In four years, the company has seen customer adoption grow from nine titles at the end of the first year to 686 titles and more than 6,000 users in 2012. The company has also increased the number of data centers during this period. The company is also selling DTI Health, its healthcare IT business, to concentrate its efforts on the news media market.
With the shift to DTI Cloud and on-premises sales have seen a rapid decline. As a consequence, operational changes have commenced with strategic personnel reductions taking place in all offices. The branch office in France has been closed.
Although there is a reduction in traditional on-premises implementations, DTI is committed to continue providing strong support for on-premises customers as it has done in the past. It has assured them that though the focus is on DTI cloud, it will not differentiate between on-premise customers and cloud customers when it came to delivering high-level support.
The company also stated its global network of solution experts will always be available to provide service to any customer in any location around the world.
Paulus commented on the impact that the transformation of DTI Cloud into a SaaS (News - Alert) service model would have on the company and noted that the cash flow would also change from large upfront payments to monthly SaaS fees over five years.
“The predictability of recurring revenue makes us a stronger company so we can continue to support our customers for the long term,” observed Paulus.
The media landscape is evolving and the news publishing industry is seeing heights that could well be dizzy. How much further it scales, what will be the scope and extent still remains nebulous.
Edited by Brooke Neuman