Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • FirstWave Cloud Technology secured a 12-month contract extension with Microsoft, valued at approximately USD 507,000 (~AUD 770,000), reflecting an 18% increase from the prior agreement.

  • The contract delivers an estimated 100% gross margin due to full ownership of IP and minimal support requirements.

  • FCT share price rose 6.25% to AUD 0.017 on 11 July 2025.

FirstWave Cloud Technology Limited (ASX:FCT) saw its share price climb 6.25% to AUD 0.017 on 11 July 2025 after announcing an expanded and extended agreement with Microsoft Corporation (NASDAQ:MSFT). The new 12-month contract, valued at approximately USD 507,000 (~AUD 770,000), represents an 18% increase compared to the previous arrangement and is expected to generate a gross margin of nearly 100%.

The contract expansion comes from an increase in the number of licensed nodes within Microsoft’s operations, rising from 12,000 to 14,000. The licensing arrangement is paid upfront and spans 12 months, with minimal ongoing support required, as Microsoft manages the software in-house. As the software IP is entirely owned by FirstWave and incurs no third-party costs, the agreement contributes directly to the company’s gross profit.

The collaboration centres around FirstWave’s NMIS v9 suite, a comprehensive network management platform designed to support IT infrastructure including networks, servers, and firewalls. Originally open-sourced in 1999, NMIS is now a core part of FirstWave’s technology suite, used globally by organisations such as Microsoft, Telmex, and NASA.

In recent weeks, FirstWave has signed additional sales agreements worth a combined AUD 1.8 million. These include a AUD 400,000 licensing deal with Claro Dominican Republic and a AUD 600,000 contract extension with Telstra Corporation (ASX: TLS), both announced in late June.

The company noted that the Microsoft agreement also lays the groundwork for future growth. Discussions are underway regarding the licensing of FirstWave’s newly released opHA Message Bus 5.0, and upcoming AI-powered IT compliance products are expected to further enhance the company’s offering in large-scale, distributed network environments.

FirstWave CEO Danny Maher, speaking from the company’s Mexico office, said the extended partnership with Microsoft validates FirstWave’s strategic direction and the strength of its product roadmap. “We have built powerful and cost-effective network management software that scales and continues to be valued by large blue-chip corporate and telecommunications clients,” Maher stated.