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ActivePort Secures $4M Licence Deal: A Boon for Cloud Gaming and Network Solutions

Wesley ParkSunday, Nov 17, 2024 5:50 pm ET
4min read
ActivePort Group Ltd (ASX:ATV), an Australian software company specializing in management and orchestration solutions, has secured a strategic licence agreement with Radian Arc Limited. This $4 million deal, announced on April 4, 2022, is set to boost ActivePort's global expansion strategy, particularly in the cloud gaming and network solutions market. Let's delve into the implications of this agreement and its potential impact on ActivePort's long-term growth.

ActivePort's agreement with Radian Arc involves delivering orchestration software, private cloud infrastructure, and technical support services. With an anticipated revenue potential of up to AUD$8.65M over 5 years, this deal leverages ActivePort's existing resources, requiring no additional capital. The software licence component contributes $30 per vGPU per month for the first 5,000 vGPUs, scaling down to an average of $7.30 per vGPU per month at 100,000 vGPUs. The cloud infrastructure delivery is valued at up to AUD $2,000,000, supplied incrementally with each unit paid for in 18 monthly installments at 9% interest. The technical support services are priced at a monthly engineering fee of USD $50,000 plus a support fee of $4,000 per nominated live system.

This strategic licence agreement significantly enhances ActivePort's competitive position in the cloud orchestration and GPU-centric applications market. By supporting Radian Arc's global customer base of major telecommunications providers, ActivePort gains access to a vast network for expansion. As Radian Arc transitions its customers from delivery and testing into live production, ActivePort's role will expand, solidifying its position as a key player in the market.

However, the scalability of ActivePort's software is crucial for meeting Radian Arc's growing demands. The agreement involves delivering orchestration software, private cloud infrastructure, and technical support services, with an anticipated revenue potential of up to $8.65M+ over 5 years. ActivePort's software, which is already integrated into Radian Arc's platform, has demonstrated its ability to scale and support Radian Arc's global customer base. As Radian Arc transitions its customers from delivery and testing into live production, ActivePort's software will need to handle increased capacity and workload. The software's ability to scale efficiently and effectively will be vital in meeting Radian Arc's growing demands and maximizing the revenue potential of the agreement.



In conclusion, ActivePort's strategic licence agreement with Radian Arc is a significant step towards global expansion in the cloud gaming and network solutions market. With an anticipated revenue potential of up to AUD$8.65M over 5 years, this deal leverages ActivePort's existing resources, requiring no additional capital. As Radian Arc transitions its customers into live production, ActivePort's role will expand, solidifying its position as a key player in the market. However, the scalability of ActivePort's software is crucial for meeting Radian Arc's growing demands, and potential challenges arise from Radian Arc's dependence on ActivePort's software for its private cloud platform.
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