Visy Industries signs up with Telstra for $50M deal including cloud computing model and changes the game
Telstra and Visy today announced that Visy has awarded Telstra a five year $50 million contract to provide a whole of business network and an enterprise cloud computing platform supporting Visy’s critical business applications.
Telstra will supply mobile voice and data services enabled by its world-class Next G™ and Telstra Next IP™ networks to Visy’s 140 Australian packaging, paper and recycling sites in Australia, New Zealand, Asia and the US.
Inside this network, an enterprise utility computing capability has also been integrated, providing security, computing, storage, and activities relating to disaster recovery and business continuity planning.
This game changing approach provides Visy with a cloud computing platform that supports critical enterprise systems, including its Global SAP environment and is expected to deliver a 30 per cent saving against the previous approach where the telecommunications network was separate from the computing model that was internally supported.
Visy Chief Information Officer, Mr Ken Major said the infrastructure means Visy can now focus on utilising rather than maintaining technology, enabling the company to improve core business efficiencies and increase overall productivity, whilst reaping the benefits of the disaster recovery and business continuity capabilities provided by the cloud computing model.
“Our business model is based on reducing cost, removing risk and managing growth. 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,” Mr Major said.
"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 (WAN), 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.
"There is a lot of talk around at the moment on cloud computing, but as this model matures a lot of companies will come to the realisation that the network is the computer and with the reach that the Telstra network has, it is ideally placed to add value to global organisations such as Visy.
“In addition, we now pay a monthly fee based on what we use for not only our telecommunications needs, but also our computing and storage needs so we no longer have the concern of investing in server and storage infrastructure for the future, as this is now available from Telstra as a service on demand. The capital that was earmarked for IT upgrades will now be better deployed into revenue generating assets across the business.”
Telstra Enterprise and Government Group Managing Director, Nerida Caesar said Telstra has made significant investments in infrastructure to support multiple customers like Visy with enterprise quality infrastructure.
“Telstra is acutely aware of the importance of using ICT investment to fuel organisational sustainability and drive differentiation. By integrating network and computing, whilst providing scaled infrastructure, we anticipate that Visy will recognise cost savings, sustainability improvements and increased productivity for its workforce as the company adapts its business processes to utilise these new capabilities”, Ms Caesar said.
“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.”
Telstra Product Management, Executive Director, Mr Philip Jones said, the Visy solution will take advantage of Telstra’s world leading IP and mobile networks and utility computing capability. This offering is architected to provide Visy with instant access to greater scale and flexibility in their ICT platforms" he said.
"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.
“We are confident Visy will reap the benefits of this ground-breaking utility-style offering to drive core business efficiencies and increase overall productivity,” Mr Jones said.
Visy Director Global Supply Chain, Doug Lukin who has overall responsibility for IT/MIS globally within his portfolio said “Telstra has brought together key IT partners including SUN Microsystems and Hitachi Data Systems to deliver this solution to Visy.”
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