ActivePort’s new $8.65m deal with Radian Arc will see a 5 year revenue stream and significant potential for growth
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ActivePort’s new agreements with Radian Arc are estimated to be worth over $8.65m over the next five years.
Global software provider ActivePort (ASX:ATV) is taking its collaboration with Radian Arc (global private cloud provider) to a new level that could see ATV’s revenue increase significantly over the next 5 years.
The two companies have just signed new agreements that extend the services ActivePort already provides to Radian Arc, starting in back in 2020.
The new services will now include software licensing, infrastructure, and technical support as Radian Arc transitions its customers from delivery and testing, into live production.
ATV says that revenue potential from the new deal could be up to $8.65+ million over the next 5 years. No additional capital is required to deliver the services, as they will leverage on ActivePort’s existing capabilities.
“The Radian Arc project demonstrates the versatility of ActivePort’s software products and the expertise of our technical team when tackling major projects at the forefront of cloud technology,” commented ATV CEO, Karim Nejaim on the deal.
Since 2020, ActivePort has been supporting Radian Arc’s global customer base of major telco providers by including its software into Radian Arc’s platform.
The Radian Arc platform provides an infrastructure-as-a-service (IaaS) for cloud gaming, artificial intelligence and machine learning applications inside telco networks.
The company offers a GPU-based Edge computing platform that delivers low latency for the best user experience, using GPUs (or Graphics Processing Unit) made by one of the leading chipmakers in the world, AMD.
AMD’s GPU technology is one of the best in the world, and is especially designed to accelerate compute-intensive tasks such as interactive gaming, machine learning, engineering visualisation and map rendering.
Radian Arc’s CEO, David Cook, said, “we partnered with ActivePort early to develop our innovative GPU-centric private cloud solution.”
“As Radian Arc has grown exponentially, ActivePort has also demonstrated its ability to source, deliver and support our technology on a global scale.”
The new agreement between ActivePort and Radian Arc is in two parts.
The first is for software and support, and comprises a monthly engineering fee of US$50k, plus a support fee of USD$4k per live system.
It also includes a software license per virtual GPU (vGPU) of US$30 per month for the first 5,000 vGPU’s.
As more systems are deployed and virtual GPU capacity is added, revenues to ActivePort will also increase.
The second agreement is for the delivery of up to $2m of private cloud infrastructure by ActivePort.
This comprises incremental units of servers, switches and routers, typically up to $60k each.
Each unit of infrastructure is paid for in 18 monthly instalments, including interest of 9% calculated on the outstanding balance at the time of payment.
Nejaim said his team has been working very closely with Radian Arc over the past two years.
“Mark Middleton, ActivePort’s CTO and his engineers have been intricately involved with Radian Arc and AMD to optimise Radian Arc’s GPU-centric cloud platform, and make it a world-leader in performance and price,” Nejaim said.
This article was developed in collaboration with ActivePort, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.