Rhipe's Microsoft Office 365 seats hit 600,000 as revenue soars

Rhipe's Microsoft Office 365 seats hit 600,000 as revenue soars

Subscriptions drive 60 per cent of the $56 million sales growth

Dominic O'Hanlon (Rhipe)

Dominic O'Hanlon (Rhipe)

Credit: Rhipe

Rhipe has increased its Microsoft Office 365 subscriptions by 80 per cent in the last 12 months, accounting for $33 million in sales.

The Australian distributor’s partners now consume more than 450,000 Office 365 paid seats and more than 600,000 Office 365 seats in total, driving 60 per cent of its $56 million sales growth.

According to Rhipe, growth in Australia and New Zealand was more "weighted" towards public cloud platforms like Microsoft Azure and the distributor’s Microsoft Cloud  Solutions Provider (CSP) program.

Overall for the financial year ending 30 June, the distributor posted $48.4 million in revenue, a rise of 36 per cent, whiles its net profit after tax doubled to $6.2 million.

Meanwhile, growth in sales of Microsoft’s private cloud data centre licensing program (SPLA) grew by eight per cent, while its proportional sales value fell from 52 per cent to 44 per cent year-on-year.

However, on a revenue front SPLA contributed roughly 29 per cent to group revenue with CSP contributing circa 37 per cent, the company noted in its annual report.

Rhipe also reported a $6.7 million or 26 per cent year-on-year increase in its operational costs, largely due to increasing its headcount by a further 110 employees. Of these, 46 were added to Rhipe’s licensing business while 64 joined its solutions team.

In addition, the company is also planning further investment in its Platform for Recurring Subscription Management (PRISM), which is used by resellers to buy, provision and bill customers for monthly cloud software subscriptions. Last year, it spent $2.2 million on the platform.

Looking forward, Rhipe said it was planning further geographical expansion, having announced last week it had moved into Japan via a joint venture. 

It claimed it also planned to grow its “channel-friendly” subscription-based cloud and software solutions.

Tags MicrosoftsoftwareazureOffice365Rhipe

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