Awantec Inks RM294 mil Deal with REDtone Digital for Cloud Computing Solutions

Awantec Technology Bhd (Awantec) has finalized a RM294.27 million agreement with REDtone Digital Bhd to deliver cloud computing solutions and services, including offerings such as Google Workspace Enterprise and Google Cloud Platform, for the government’s unified communication and collaboration project, known as MyGovUC3.0.

This strategic partnership signifies a significant achievement for Awantec as the exclusive managed service provider (MSP) for Google Cloud in Malaysia under the government’s Cloud Framework Agreement (CFA).

Awantec informed Bursa Malaysia that its wholly-owned subsidiary, Awantec Systems Sdn Bhd (ASSB), has entered into a service agreement with REDtone Digital’s wholly-owned subsidiary, REDtone Engineering & Network Services Sdn Bhd (REDtone), on Monday, February 12th.

Just last week, REDtone secured the MyGovUC 3.0 contract valued at RM398.1 million from the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) to deliver unified communications solutions.

Awantec reports that the total payment from REDtone to ASSB for the services amounts to RM294.27 million, excluding any applicable taxes imposed by the relevant authorities. The service agreement spans a period of 57.5 months, commencing on February 14, 2024, and concluding on November 30, 2028.

The group highlights that MyGovUC 3.0 represents a seamless continuation of the highly successful MyGovUC 2.0 project aimed at enhancing the productivity and quality of public service delivery. Therefore, this collaboration underscores Awantec’s pivotal role in spearheading digital transformation initiatives and enhancing operational efficiency.

In a statement, its chief executive officer, Azlan Zainal Abidin, emphasized, “Awantec’s recognition as the premier partner with MSP status for Google Cloud in Malaysia underscores our capabilities and steadfast commitment to advancing the government’s digital transformation agenda. With two decades of experience in successfully executing large-scale technology projects, we are confident that this collaboration will significantly accelerate digitalization efforts in the public sector.”

Trading in Awantec shares was suspended for one hour starting from 9 am on Tuesday.

It’s worth noting that Awantec has been classified as an “affected listed issuer” by Bursa Malaysia following the loss of a major partnership deal in January 2021.

In the past, Awantec’s main source of revenue stemmed from its partnership with Microsoft. Through its subsidiary, Prestariang System Sdn Bhd, the company held the exclusive status of Microsoft Licensing Solutions Provider for all government agencies and public training institutes in the country. This contract with Microsoft solutions constituted 90% of Awantec’s revenue at that time.