Australian cloud security specialist, FirstWave Cloud Technology (ASX:FCT), has been awarded a cloud security contract for Qantas. As per the terms of the deal, the contract runs over 30 months, with a 24 month option extension, and is worth $1.14 million.
The contract also sees FirstWave Cloud Technology deploy Cisco cloud security services, including advanced malware protection, to secure Qantas’ domestic and international operations.
The terms of the contract could see FirstWave potentially bring in a further $38,000 of incremental monthly income for 30 months to its growing recurring revenue base, in addition to the $1.14 million contract valuation.
According to a statement released on the Australian Securities Exchange (ASX), the company said the deal builds on $14,000 of incremental monthly recurring revenue it secured in November 2016, from a three-year $500,000 South Australian Government e-mail security contract.
The company has been a key Telstra partner for 10 years and the company mentioned that Telstra was instrumental in its win of this “major new enterprise customer relationship”.
FirstWave Cloud Technology said the deal was “secured through the company’s long-term partnership with Telstra” as it provides cloud-based security-as-a-service (SaaS) to some of Telstra’s enterprise and government customers.
The company’s managing director, Steve O’Brien, said the company continues to strengthen its market presence and recurring revenue base.
“We are delighted to be providing cloud security services to this iconic Australian company.
“Through our Telstra partnership, Qantas clearly recognises our SaaS platform. The contract illustrates the confidence in us from large organisations such as Qantas when migrating from on-site security to cloud-based security platform,” he said.
According to O’Brien, more Tier 1 customer sign-ups are pending, which will further strengthen the company’s recurring revenue base.
“FirstWave’s monthly recurring revenue base is now scaling up very rapidly and we expect this to strengthen over the coming months as we sign on new customers.
“We are still in the early stages of building our contracted revenue base, with Telstra’s 20,000-strong enterprise and government customer base and other international prospects, presenting a huge market opportunity for FirstWave,” he added.
He also mentioned that the company is in a “high growth phase”, with contracts of similar and larger scope and value to that of Qantas and the South Australian Government department being pursued, along with the ongoing sign up of next generation firewall contracts.
“We are progressing a number of other large enterprise-grade tenders and we will update shareholders on progress shortly. These will contribute meaningfully to our growing revenue base,” O’Brien said.
It also recently recruited former director of Microsoft Global Practices, John-Paul Burgess, in May last year to build professional services and local support.