In today’s fast-evolving digital world, where 5G, cloud computing, and remote work are transforming industries, seamless network performance is essential. ActivePort Group Limited (ASX: ATV) delivers cutting-edge automation solutions that optimises efficiency enhancing connectivity across global networks.
By simplifying complex networks, enhancing performance, and reducing costs, Activeport’s services empower telecoms, MSPs, and enterprises to stay agile and efficient.
Figure 1: ActivePort Group Limited
Industries Served and Customer Base
The company caters to diverse industries, including telecommunications, IT service providers, banking, government, healthcare, and retail. Their solutions are designed for large enterprises looking to streamline multi-vendor networks and improve service delivery.
The company has established a global presence, catering to the increasing demand for its unrivalled multi-vendor software solutions. This demand has led several prominent telecom providers to incorporate Activeport’s technology into their systems. The company’s high-quality solutions and expansive international reach have solidified its reputation as a trusted global brand.
Figure 2: Activeport’s Orchestration Software layers
Activeport’s Orchestration Software layers over the top of existing infrastructure and systems to automate the network and streamline efficiency. Activeport’s white label Customer Portal allows customer self-service and on-demand product deployment.
Product Portfolio and Market Potential
The innovative technology suite underpinning Activeport’s offerings is what drives the company’s strong market demand.
1. SD-WAN Solution (Software Defined Wide Area Networking)
The Software-Defined Wide Area Network (SD-WAN) platform offers enhanced performance through live failover, encrypted data transmission, and bandwidth bonding. Its multi-tenant scalability ensures high reliability in healthcare, IT, telecom, and financial services. The SD-WAN global market was valued at USD 4.99 billion in 2023 and could touch USD 44.38 billion by 2031. The CAGR will be a whopping 31.40%. Including SD-WAN Solutions in the Company’s product lineup will ensure significant growth in the coming years.
Figure 3: Global Market Predictions for SD-WAN from 2024 to 2031
2. Network Orchestration
Activeport’s orchestration software integrates multi-vendor solutions through a single-pane-of-glass interface. With this technology, enterprises and telecom providers can automate workflows and rapidly deploy new services.
Activeport’s Orchestration, or MANO software (Management and Orchestration software) is at the heart of the technology stack. This technology allows customers to integrate their existing network infrastructure vendors, private or public cloud and OSS & BSS systems. The market for this product is enormously valued at USD 6.41 billion in 2023 and is projected to reach USD 19.05 billion by 2030. The CAGR is predicted to be 19.89% during the forecast period from 2023 to 2030.
According to market researchers, the growth will be spurred by the rising adoption of virtual networks. Activeport’s orchestration solutions will play a significant role in helping organisations streamline operations and enhance service delivery in the future.
3. Bandwidth on Demand (BoD)
The Bandwidth on Demand (BoD) solution enables real-time bandwidth adjustments through a user-friendly interface, providing enterprises with usage-based billing models. This flexibility is especially beneficial for retail, banking, and government industries requiring scalable connectivity solutions. Activeport’s BoD service promises “Provision in 3 minutes, not 3 weeks.”
Figure 4: Customer Access Journey for Bandwidth on Demand (BoD)
The BoD market, valued at USD 5.47 billion, is projected to expand to USD 7.28 billion by 2030 with a 4.15% CAGR. This trend reflects an increasing need for businesses to optimise costs while maintaining high-quality service delivery.
Figure 5: The Bandwidth on Demand (BoD) Market
4. Network Functions Virtualisation (NFV)
Activeport’s Network Functions Virtualisation (NFV) platform virtualises hardware devices such as routers, firewalls, and load balancers, significantly reducing capital expenditure and simplifying service delivery. Activeport stands out among NFV software vendors due to its unique integration of technology layers with Activeport SD-WAN software.
The combination delivers a seamless, integrated solution, enhanced by ActivePortal’s single-pane-of-glass interface, which provides comprehensive visibility and management of all uCPE service functions. Nowadays, Enterprises are transitioning to virtualised environments, which is an excellent hike in the NFV market.
Activeport’s Operating System (AcPOS) is a device-based software that sits within ActivePort’s MANO framework, called ActivePortal. This innovative operating system makes it easy to deploy and manage virtual network functions (VNFs) on uCPE, delivering fast, reliable and streamlines operations.
Figure 6: ActivePort’s Solution to Simplify Network Complexity
The NFV market is set to surge from USD 26.44 billion in 2022 to USD 180.67 billion by 2031, with a remarkable CAGR of 23.8%. Such rapid growth presents lucrative opportunities for Activeport to enhance its NFV offerings and cater to evolving customer needs.
Figure 7: Global NFV Market Overview by Component
5. Compute Platform
Built on AMD EPYC™ processors, Activeport’s high-performance computing platform supports data-intensive workloads such as AI, GIS mapping, and 3D rendering. AMD stands at the forefront of high-performance and adaptive processor technologies, and Activeport is among the exclusive companies worldwide that are leveraging the advanced AMD architecture. The global high-performance computing market is anticipated to experience growth from USD 54.39 billion in 2024 to USD 109.99 billion by 2032, exhibiting a CAGR of 9.2%. This is how Activeport combines robust technologies with high market potential.
Figure 8: Market Share of Industries in the Global High-Performance Computing Market
6. SD-Internet
Activeport’s SD-Internet solution delivers reliable internet, SIP voice, and video services, ensuring businesses maintain an always-on connection to critical cloud applications. Key features include:
- Load Balancing: Distributes network traffic evenly to prevent overload failures
- Real-time Analytics: Offers built-in dashboards for optimal visibility and control
- Reliable and Secure: Ideal for single-location businesses, the SD-Internet solution provides live failover, reducing operational costs and ensuring seamless connectivity
- Enhanced Performance: The bonded internet connection increases bandwidth and performance using encrypted packet-based technology, which securely combines various access methods, including copper, fibre, and wireless, safeguarding data in transit
New Partnership with FibreconX
In a significant development, Activeport announced a new channel partnership with FibreconX, an Australian provider of dedicated duct and fibre networks. This strategic partnership, launched at the Commsday conference on October 15, combines company’s network automation platform with FibreconX’s pure fibre network infrastructure, opening up new opportunities for both companies in the rapidly evolving telecommunications and technology sectors.
Mr. Mark Rafferty, CEO of FibreconX, commented: “FibreconX is incredibly excited to be working with ActivePort who can offer a fully automated Network-as-a-Service that can deploy fast clean networks on the FibreconX infrastructure and offer it to the Partners.”
This collaboration enables company to create new wholesale products for service providers that are faster, more cost-effective, and comprehensively connected to Australia’s growing digital ecosystem. The partnership leverages Activeport’s Global Edge self-service network automation system to deliver access to cloud services over FibreconX’s infrastructure.
Activeport’s Path to Expand: Up to $5.3 Million in New Funding
On October 9th 2024, Activeport Group Limited announced a 3 for 4 renounceable rights issue to raise approximately AUD 5.3 million (before costs) at an attractive 2 cents per share. For every three new shares subscribed, eligible shareholders will receive one free attaching new option with an exercise price of 10 cents, closing date is 1 November 2024. The funds raised will hire additional technical and business development staff, grow recurring revenue from enterprise software licenses, expand the Company’s SaaS business globally, and repay existing loans and creditors.
Mahe Capital Pty Ltd has been appointed the Lead Manager for the Rights Issue.
Mr. Peter Christie, the CEO of Activeport, expressed his enthusiasm about the fundraising: “Activeport has achieved profitability and established itself as a leading orchestration software vendor for networks, data centres, cloud gaming, and artificial intelligence. We have significant projects underway in Asia, India, and the Middle East and an extensive pipeline of new opportunities. This fundraising will provide a solid foundation to grow our recurring revenue base and achieve consistent, positive free cash flow.”
Mr Peter Christie, CEO of the Activeport Group Limited
Mr. Peter Christie, the CEO of Activeport, is a technology expert with three decades of experience in various areas of the IT industry, including software development, global network management, and the implementation of enterprise systems. He has significant expertise in capital raising, IPOs, and senior management roles within publicly traded technology firms. Throughout his extensive career, Peter has worked with renowned global technology companies such as Kodak, Unisys, IBM, Logica, Mincom, and Orange. He currently serves as the Chairman of Nexion Group and Radian Arc.
Figure 9: Mr Peter Christie, the CEO of ActivePort Group Limited
Looking Ahead: FY25 Focus
As Activeport looks to the future, the Company outlined its key focus areas for the fiscal year 2025:
- Recurring Revenue Growth: Continued emphasis on building stable, predictable revenue streams.
- Balance Sheet Optimization: Improving financial health and flexibility.
- Global Telco Deployments: Expanding its footprint with significant telecommunications providers worldwide.
- FibreconX Partnership: Deepening collaboration to drive mutual growth.
- Product Development: Ongoing innovation to stay ahead of market demands.
Investor’s Outlook
Activeport Group Limited is well-positioned for growth in booming sectors like telecom, IT, and cloud connectivity. With innovative solutions such as Network Orchestration, NFV, and SD-WAN, the company is primed to capitalize on the projected $1.6 trillion global telecom market by 2024. The company’s strategic trademarks and early-mover advantage strengthen its competitive edge, while a $5.3 million rights issue accelerates software development and expansion. Strong industry partnerships and recurring revenue streams further enhance its appeal to investors, offering a compelling opportunity in a rapidly expanding market.
As of October 18th, 2024:
- The Company’s share price was AUD 0.021, with a 52-week range of AUD 0.018 to AUD 0.135
- The market capitalisation of Activeport Group Limited was AUD 7.06 million
- The Company has 44 million shares on issue
With a solid product portfolio and a strategic growth plan, Activeport represents an attractive investment opportunity for those seeking exposure to rapidly growing technology markets.