Telstra Extends IBM Deal

Telstra renews services agreement with IBM until 2014

June 8, 2009

2 Min Read

SYDNEY -- Telstra announced today that it has extended its information technology (IT) operations and services agreement with IBM (NYSE: IBM) until the year 2014. The five-year contract, which is an extension of an existing services agreement, is worth a total of AU$745million. It will result in greater automation and improved remote management capability of Telstra's IT systems, while reducing server build time enabling the telecommunications giant to more efficiently execute complex projects across its IT infrastructure.

As Australia's leading telecommunications provider, Telstra runs the nation's largest non-government IT infrastructure. IBM builds and manages Telstra's servers, software and systems in this complex environment. As part of the new services agreement, IBM will move to improve operational delivery while simplifying and streamlining server builds for Telstra, including:

  • Implementing a standard set of processes and tools across more than 3000 servers

  • Adopting a "factory" approach, featuring standardised, repeatable processes, to build and configure new servers for Telstra.

  • Defining standard processes, procedures, tools, forms and work products for each phase of a server build

  • Implementing streamlined documentation requirements in the areas of design, approvals and changes

  • Implementing a consistent server base state for application on- boarding

The streamlined approach will deploy a more consistent IT platform across the whole of Telstra's IT infrastructure, and will result in reduced costs and improved efficiencies. It will also provide increased automation of Telstra's IT systems, allowing for improved levels of monitoring, patching and remote management. Other benefits include:

  • Streamlined documentation requirements

  • Quicker application deployments

  • More efficient execution of complex IT projects

John McInerney, Telstra CIO and Group Managing Director of IT said, "We have a long and proud association with IBM. We consider them to be a strategic partner and are confident that this agreement will continue to add value to Telstra's infrastructure operations and delivery."

Telstra Corp. Ltd. (ASX: TLS; NZK: TLS)

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