Renewal Contract for Unisys - Analyst Blog


Earlier this week, Unisys Corporation ( UIS ) announced that TravelSky has signed a three-year renewal contract with the company for its cloud computing solutions. This was done with the clear intent of catering to TravelSky's demand accruing from the Chinese aviation industry. 

Previously, Unisys' private cloud software solutions would be used and tested at TravelSky's own data centre. It is lucid that the advanced technology and IT expertise offered by Unisys have been proved irrefragably good, due to which these are now being integrated pervasively with the company's core production platform.

Using the Unisys Open Message Switching Engine (OMSE), TravelSky would now effectively connect its travel agencies and reservation systems. TravelSky has also displayed its interest to provide the OMSE Gateway as software by way of service ( SAAS ) to its agents using the Unisys Secure Private Cloud Solution release 2.1. The Unisys ES7000 Model 7600R G3 Enterprise Server is also scheduled for implementation which shall cater to a broad set of 24 virtual servers; operational only on one machine. 

These varied advanced technological advancements shall provide TravelSky with a more flexible, dependable and cost-efficient infrastructure solutions at its data center. The venture would also solidify Unisys' expertise in providing upgraded cloud computing solutions.

The company faced a relatively weak quarter during its last leg of 2011. Service revenues declined around 3% whereas technology revenues deteriorated 19% annually. Hence, we can hope that such contract renewals would elevate the company from its depressed state and help raise the performance level in the upcoming quarter.

While the company strides ahead in the path of recovery, it should remain chary of similar advancements made by its competitors in the industry. Fair Issac Corp. ( FICO ) announced on March 15, 2012 that the UK motor insurance specialist Admiral implemented an innovative claims fraud system using FICO's analytics, business rules and analysis technology.

The company currently retains a Zacks #4 Rank, which translates into a short-term 'Sell' rating. We also maintain a long-term 'Neutral' recommendation on the stock.

FAIR ISAAC INC ( FICO ): Free Stock Analysis Report
UNISYS ( UIS ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: FICO , SAAS , UIS

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