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Rhype appointed to pilot Microsoft’s first Cloud Licensing Solution Provider

Rhype Limited (ASX:RHP) should trade higher after NewLease signed an additional Agreement with Microsoft, effective on the 1st of June 2014.

The new agreement authorises NewLease, a wholly owned subsidiary of Rhype, to sell Microsoft software licenses under enterprise agreements.

Microsoft has chosen NewLease to pilot the new “Cloud LSP” model and the territory under this agreement is Australia and the Pacific Islands.

For NewLease, this new agreement establishes a new and incremental revenue stream for and its service provider clients, and broadens NewLease’s reach into the Cloud based software market to extend hybrid migration opportunities.

Over the past 10 years NewLease has established itself as a leader in Cloud licensing solution delivery under the Services Provider License Agreement program.

Under this program, NewLease sells subscription software licenses to service providers who in turn offer a Cloud based product or service solution to end customers.

As Cloud adoption increases, fuelled by demand from end customers, the demand for subscription based licensing has grown significantly.

This is supported by a sustained push towards a subscription model by large global software vendors.