FirstWave Cloud Technology Limited (ASX: FCT), a global network management and cybersecurity software group, has announced a contract extension and increased annual recurring revenue (ARR) with Microsoft Corporation (NASDAQ: MSFT). The new 12-month agreement is valued at approximately USD $507,000 (around AUD $770,000), reflecting an 18% increase from the previous agreement. The deal effectively delivers a gross margin of approximately 100% for FirstWave.
FirstWave provides enterprise-grade network management, automation, audit and cybersecurity software to approximately 150,000 organisations across 178 countries. Their clients include major corporations such as Microsoft, Telmex, Telstra, Claro and NASA. Over the past three weeks, FirstWave has secured AUD $1.8 million in sales agreements, which includes a AUD $400,000 licensing agreement with Claro Dominican Republic and a AUD $600,000 contract extension with Telstra Corporation.
The collaboration with Microsoft involves various products from FirstWave’s NMIS v9 software suite. The increased contract value is primarily due to a rise in licensed nodes from 12,000 to 14,000. There are no material termination clauses, and the license subscription is paid upfront for the entire 12-month period. FirstWave will provide support during this period, but anticipates minimal requirements as the software is managed by Microsoft on-premise.
FirstWave CEO Danny Maher, speaking from the company’s Mexico office, stated that the new agreement with Microsoft is a strong validation of FirstWave’s product roadmap and its strategic objective to expand its network management footprint in North and Latin America. The company sees further growth potential in the number of licensed nodes, the licensing of its new opHA Message Bus 5.0 technology, and upcoming AI-powered IT compliance releases.
