Technology news and Jobs arrow VIRTUALISATION arrow Visy chooses Telstra for comms and cloud
Visy chooses Telstra for comms and cloud E-mail
by Stephen Withers   
Tuesday, 07 July 2009
Telstra has received a $50 million contract covering communications and a cloud computing platform placed by packaging and recycling giant Visy.

A new contract with Telstra means Visy will source its communications, computing and storage requirements on a pay-by-the-month basis.

Telstra's bill will incorporate services from other providers including Sun Microsystems and Hitachi Data Systems.

"This contract demonstrates Telstra's successes in providing a utility-style model for IT infrastructure to enterprise companies looking to reduce their internal costs, and supports the wise use and reuse of scarce resources in a cost-effective way," said Nerida Caesar, Telstra enterprise and government group managing director.

The deal will see Telstra deliver mobile voice and data services to Visy's 140 locations, along with a cloud computing platform running SAP and other applications.

Visy expects this arrangement to reduce its telecommunications and computing expenditure by 30 percent.

"In order to remain competitive and achieve our commercial objectives in a tough economic environment, we need to change the way in which our IT resources are utilised and look at more innovative offerings around a user-pay model with our vendors, so we can share the risk and reward and allow us to grow together," said Visy CIO Ken Major.
 
"We challenged our incumbents to provide us with our requirements, but the other offerings were in essence hybrids of our pre-existing model. Telstra was the only provider that could deliver world-class Wide Area Network, voice, mobile, wireless, as well as providing us a full utility model for our computer server and storage needs, in its own on-shore enterprise grade data centres," he explained.

The contract will free Visy's capital for investment in income-producing assets rather than IT equipment. But one company's opex is another's capex - Telstra has had to invest in order to service companies such as Visy.

"We have invested significantly in our network allowing customers to have services and intelligence such as high definition voice and video, application aware networking and unified communications, which are supported by highly focused professional network services to help Visy continue to innovate into the future," said Philip Jones, Telstra's executive director, product management.

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