LiveTiles Ltd (ASX:LVT) shares climb higher on Nucleus Cyber partnership news

The LiveTiles Ltd (ASX:LVT) share price has avoided the tech selloff after announcing a new partnership. Should you invest?

a woman

It isn't just the WiseTech Global Ltd (ASX: WTC) share price that has escaped the tech selloff today.

The LiveTiles Ltd (ASX: LVT) share price has also missed out and is up 2.5% to 40 cents at lunch.

Why is the LiveTiles share price on the rise today?

This morning LiveTiles announced that it has formed a partnership with Nucleus Cyber to bring AI-powered security to the Intelligent Workplace.

Nucleus Cyber is an AI-driven data security company for the Intelligent Workplace which recently acquired the Security Sheriff platform from Cyxtera Technologies.

The release explains that this technology provides advanced data security protection for the Microsoft suite of workplace solutions, including SharePoint and Office 365. It provides security perimeters for all environments including on-premise, cloud, and hybrid environments.

In addition to this, the platform empowers enterprises to automatically find, classify, and secure unstructured data in their digital environment, and determine how the information is accessed with granular control.

Due to the fact that Microsoft has over 400,000 customer organisations leveraging SharePoint Online as part of their Office 365 subscription, management believes the addressable market for the solution is extremely large.

How does LiveTiles benefit?

By partnering with Nucleus Cyber, LiveTiles' Intelligent Workplace will now be enhanced by the additional data security capabilities of Nucleus Cyber's platform to create the world's first Intelligent Secure Workplace Solution.

The company intends to promote this solution to mid-sized and large organisations through its sales and marketing channels.

It expects strong demand to come from large enterprises in the financial, insurance, and legal industries due to the impact of global security regulations.

All in all, management believes this and joint promotional activity with Microsoft and other LiveTiles strategic partners, will drive strong commercial opportunities.

Should you invest?

I think the partnership makes a lot of sense and can only make LiveTiles' offering more attractive to potential customers. But time will tell what impact it has on its sales growth over the coming years.

While I think LiveTiles is an exciting small cap tech share, it is still too soon for me to make an investment.

So for now, it will remain on my watchlist while I focus more on profitable small cap tech shares such as ELMO Software Ltd (ASX: ELO) and Citadel Group Ltd (ASX: CGL).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. The Motley Fool Australia owns shares of Citadel Group Ltd and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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