Telstra-Microsoft tie up spawns international copycats

Beverley Head
Monday, 29 March 2010 14:36

Business IT - Networking

Six months into its cloud computing hook-up with Telstra, the president of Microsoft’s business division has made clear this is how the software giant will manage SME access to its cloud globally, with similar deals with international telcos now in the wings.

Speaking exclusively with iTWire on his first visit to Australia since joining Microsoft, Stephen Elop said one of the key reasons for the trip was to meet Telstra. “What we are doing with Telstra in taking advantage of a large and successful telecoms company in a country to help us extend our reach is a strategy for the world.”

Elop added: “That is a future signpost for how we deal with the extension of the cloud around the world.”

Asked whether Telstra represented a safe sandpit for Microsoft, Elop said that term was misleading as it implied an experiment. “This is absolutely a leading example of how we want to proceed and yes we are learning a tremendous amount from this, gaining success and traction – but do not imply for a moment it’s a casual experiment – it’s a primary vector for how we go to market.”

Asked about the importance of the National Broadband Network to both its initiative with Telstra and Microsoft’s cloud computing plans, Elop was at his diplomatic best.

“I won’t comment on the national network in Australia – but the utility of the network is critically important – two underlines under the word critically.

“One of the reasons for working with Telstra is their expertise and success with networking in Australia. It is the case that what we can achieve with cloud computing is fundamentally constrained by factors like networking.

“One of the key things we worry about is its availability, so investments in that area, particularly as it extends down to higher bandwidths to individual homes and businesses are very, very important.”

With the May/June release of Microsoft Office 2010 and SharePoint 2010, which are presently in beta testing, more Microsoft tools and functionality will be offered through Telstra’s T-suite portal.

Telstra and Microsoft first announced their liaison in November 2008, finally launching the first offerings in September 2009, aimed squarely at the SME space. The applications run in Microsoft’s cloud, with Telstra managing the access and billing.

Microsoft Australia managing director Tracey Fellows said that customers had signed up from “tens of seats” to “hundreds” of seats with a wide range of companies using the service, with professional services companies among the early enthusiasts. However she declined to name any local users of the service.