Sourcing Monthly: November 2014 – December 2014

Deal Table

Date	Supplier	Summary
25/11/2014	Equinix	National Voice + Data has leased space in Equinix’ Melbourne data centre, ME1.
02/12/2014	Equinix	Equinix has established an agreement with Cloud services provider Cloud365 to take space in its Melbourne Data Centre facilities.
05/12/2014	SmartTrans	SmartTrans will develop a platform to facilitate online bookings for China International Travel Services.
09/12/2014	NEC	The Northern Territory government has engaged NEC to provide end-user computer services under a $55M, three year agreement.
10/12/2014	Optus	Optus will provide ICT services to Suncorp Group Limited under a seven year agreement.
10/12/2014	Tata Consultancy Services	Tata Consultancy Services (TCS) will be responsible for all of Qantas’ application management and maintenance under a five year agreement.
15/12/2014	IBM	IBM will provide Cloud services to Finzsoft Solutions under a five year agreement.

Sourcing Deals – Detailed Description

National Voice + Data Data Centre Agreement – 25 November 2014

Telecommunications company National Voice + Data has established a contract to take space in Equinix’ Melbourne data centre. National Voice + Data aims to extend its voice, data and Cloud infrastructure services provided to Victorian customers. Equinix’ Melbourne data centre ME1 is currently under construction.

Cloud365 Data Centre Agreement – 2 December 2014

Equinix has leased space in its Melbourne data centre to Cloud service provider Cloud365. Cloud365 also provides software-as-a-service (SaaS) solutions and aims to reduce costs and optimise data centre infrastructure for its service offerings. Once complete, Equinix’ data centre facilities are expected to provide a capacity of 1,500 cabinets.

CITS Online Platform Agreement – 5 December 2014

Australian mobile payment company SmartTrans will develop and distribute software through integrated online platform for China International Travel Services (CITS). The new platform will allow for online bookings and payments for travel services between Australia and China. CITS is China’s largest state-owned travel services provider, and the agreement was established under the free trade agreement between Australia and China.

NT Government Managed Services Agreement – 9 December 2014

NEC Australia will provide end-user computer services to the Northern Territory government, spanning 20,000 users. Under the agreement, NEC will be responsible for providing:

Desktop, notebook and mobile device on-site and remote support
File and print services
Email services
Desktop application management
Asset management

Suncorp ICT Services Agreement – 10 December 2014

Optus will provide a range of ICT services to Suncorp Group Limited, which cover:

Voice
Contact Centre
Data network
Transaction solutions
Mission-critical network management
ICT environments to optimise efficiency

Qantas Application Services Agreement – 10 December 2014

Tata Consultancy Services (TCS) has established a contract to provide application management and maintenance services to Qantas, covering all airport operations and commercial systems. The agreement is founded on business-based outcomes for distinct business units, with specific service level agreements and targets for each of Qantas’ 22 areas.

Finzsoft Solutions Cloud Services Agreement – 15 December 2014

Financial software provider Finzsoft Solutions has engaged IBM to transfer sovereign finance and banking applications to the IBM Cloud, hosted at IBM’s New Zealand data centres in Auckland and Wellington. Finzsoft has commented that benefits expected from the arrangement include faster solutions deployments, reduced costs, enhanced security and increased capacity to meet market demands.

Tenders and Projects

Date	Buyer	Summary
25/11/2014	Federal Government	The Federal Government has announced an intention to search for vendors to join a whole-of-government email and desktop services procurement panel. The government is likely to go to market for vendors in late 2015.

Other News

Date	Topic	Summary
18/11/2014	Forecast: Outsourcing Trends	A recent global survey indicates 63 % of respondents expect a growth in outsourced ICT services and an increased demand for IT-as-a-service (ITAAS) solutions. These increases have been attributed to higher costs associated with enterprise IT solutions as well as more client-centric vendor services and product offerings. Respondents also expect a shift in roles and responsibilities associated with IT services management and vendor management, with a greater demand for CIO involvement in service contracts establishment and maintenance.
21/11/2014	Data#3 Expects 2015 Growth	Service Provider Data#3 expects growth in the first half of 2015. Data#3 has attributed growth in 2014 to its capacity to keep service offerings relevant to flexible customer needs and extended market coverage.
22/11/2014	Forecast: 2015 IT Business Trends	Increased involvement of CIOs in managing IT services and a greater emphasis on security issues is expected in 2015. ICT vendors are expected to continue splitting apart to provide service offerings that are more targeted to meet the demands of supporting evolving technologies and business processes.
24/11/2014	Dimension Data Government Managed Cloud Services	Dimension Data has launched a managed Cloud services platform, based in Canberra to cater to the needs of Australian government agencies. The platform launch was driven by the government’s Cloud-first policy.
24/11/2014	Telstra Announces Government Cloud	Telstra has announced it will develop a Cloud environment specifically for federal, state and local government agencies. The environment will centre around a highly secure and compliant service for government requirements.
24/11/2014	UXC Predicts 2015 Outsourcing Spend Drivers	A spokesperson from UXC Connect has predicted IT spend will be driven by definable business-based outcomes in 2015, necessitating service providers to provide outsourcing delivery models based on integrating specific business outcomes with service offerings.
24/11/2014	Hosted Networks Data Recovery Offerings	Hosted Networks has announced it will include desktop data recovery services with its Cloud-hosting offerings. Hosted Networks stated there was a current gap in Cloud services where traditional disaster recovery strategies often do not support Cloud solutions adopted by users.
25/11/2014	Victorian Firm Uses Unlicensed Software	Planning and Design, a Victorian architectural drafting firm will pay BSA $118,000 for using unlicensed copies of Adobe Photoshop, Acrobat and Autodesk AutoCAD for five years. BSA commented it is important for businesses to understand financial and IT security risks associated with using unlicensed software and called for a greater emphasis on Software Asset Management (SAM) protocols.
25/11/2014	Melbourne IT Named as AWS Premier Consulting Partner	Amazon Web Services (AWS) has named Melbourne IT as a premier consulting partner for its managed services solutions. The selection follows one year of certifications, customer references and consultancy competency assessments. Melbourne IT’s application development, maintenance, support, and Cloud solutions were the focus of the accreditation.
26/11/2014	Forecast: Telecommunications IT Budgets	Telecommunications IT budgets are expected to rise in 2015, with increased investment in optimising network assets, infrastructure and improved service quality. Outsourcing engagements between telecommunications and IT service vendors is expected to rise as a result.
27/11/2014	Melbourne IT Social Media Managed Services	Melbourne IT has announced new social media management service offerings.
28/11/2014	Rhipe Acquires nSynergy	Rhipe has purchased Cloud services provider nSynergy to expand its Cloud and associated support solutions.
28/11/2014	Information Security Measures	Recent reviews indicate that while security checklists to establish mitigation strategies are helpful, difficulties arise when such lists are treated as compliance mechanisms. The review also indicates a risk-based approach to information security measures is still preferable.
01/12/2014	Queensland Government Files Claim Against IBM	The Queensland government has announced it will launch legal action against IBM for the failed health payroll system. The outsourcing agreement for a new payroll system resulted in problems due to malfunctions, ultimately costing the government $1.2B.
01/12/2014	Capgemini Australia/Digital Chameleon Partnership	Capgemini Australia and Digital Chameleon have established a partnership to develop a digital transformation practice. The aim of the agreement is to enhance skills in social media, mobile, analytics and embedded device areas.
02/12/2014	Study: IT Contractors	A recent study has found that while the pay gap between IT contractors and in-house IT resources has narrowed, contracting still remains an attractive employment alternative. The study found reasons professionals prefer IT contracting include a perceived ability to earn more, sense of freedom, greater work variety and flexible hours.
03/12/2014	Security Concerns in Cloud Uptake will Remain in 2015	A recent review indicates that Cloud security will remain a major concern in 2015 and slow Cloud adoption in Australia. The review also indicates security professionals will find it difficult weighing operational benefits of new technologies against potential security risks.
03/12/2014	Forecast: 2015 MSP Pricing	A global survey indicates managed service providers largely expect prices for service offerings to remain constant in 2015. Higher-growth vendors expect to raise prices, larger deals, and develop value-based pricing models in 2015. Vendors expecting price rises have attributed increases to new offerings focused on emerging and advanced technologies lower growth vendors do not provide. The survey also found the evolution of new and highly targeted services is expected in 2015.
03/12/2014	Outsourcing Transition Hazards	A review conducted by the Outsourcing Center has flagged a number of serious issues when structuring outsourcing agreements. Arrangement vulnerabilities that arise during the transition phase include unexpected software licensing costs and discovering offshore restrictions or prohibitions after an agreement has been settled. The Outsourcing Center also emphasised the critical nature of a vendor’s capacity and flexibility when customising user solutions without excessive costs.
03/12/2014	2014 Vendor Offerings Growth	A recent study has found managed service providers have expanded service offerings in 2014. Network and connectivity support, client IT Service Level monitoring and Cloud monitoring services have experienced the highest growth rates in 2014. Service offering expansion has also occurred in Mobile Device Management and Bring Your Own Device Management in 2014.
03/12/2014	Forecast: 2015 Cyber Attacks	Cyber attacks against enterprises are expected to rise dramatically in 2015 as more ransomware variants develop. Financial data has been flagged as the most targeted and valuable information in attacks.
04/12/2014	Avaya Predicts Growth	Avaya predicts its software and services business will expand, with sharp increases in mid-market uptake and demand for managing network complexities. A survey commissioned by Avaya found the majority of IT staff in Australian enterprises experienced negative impacts due to network complexities which impose limits on the ease of implementing network changes. Network change errors, IT project disruption, supply chain disruption, and backlash from lines of business were amongst the most serious outputs of network complexities.
05/12/2014	Review: Disaster Recovery in 2014	A recent study has found costs associated with data loss and downtime have been high in 2014, at approximately $65.5B. The study also found 78 % of Australian businesses believe they do not have sufficient resources to recover after a disruption, with an average of three working days of downtime. Challenging security areas were flagged in big data protection, mobile and hybrid Cloud environments.
09/12/2014	Federal Education Department Cloud Readiness Targets	The Federal Education Department has announced it expects its application systems will be “Cloud ready” within five years.
09/12/2014	GlobalNet Solutions Australia Partner of the Year	IT services provider GlobalNet Solutions Australia has been named as Australia/New Zealand Partner of the year by network vendor A10 Networks.
10/12/2014	IT Contractors Require Financial Skills Development	A review conducted by the Bookkeeping Institute of Australia has found contractors in the ITC sector have the most gaps in their accounts, with evidence suggesting many IT contractors lose income because of poor record-keeping and lack of diligence when invoicing.
11/12/2014	Cisco to Purchase Neohapsis	Cisco has announced an intention to purchase Neohapsis in order to expand its security service offerings. Neohapsis specialises in evaluating corporate security risks and compliance assessment.
11/12/2014	Forecast: 2015 Security Threats	A recent study has found increased security threats in 2015 when engaging external vendors. Risk factors that can result in vulnerabilities include sharing sensitive information with suppliers and loss of direct control over shared information. Vulnerabilities arise because information confidentiality, integrity, or availability can be compromised when sensitive information is shared.
11/12/2014	Webinar: Business Process Outsourcing	The Outsourcing Center has announced a webinar regarding successful business process outsourcing initiatives, with a focus on HR. The webinar is set for 28 January, 2015.
11/12/2014	Acronis Backup-as-a-Service Offering	Acronis has announced it has added a backup-as-a-service offering to its current Cloud portfolio.
15/12/2014	Forecast: 2015 IT Services Spend	Recent research indicates IT services spend will experience increases in a range of areas, including IT infrastructure resource consolidation, security enhancement, IT-enabled business innovation, social applications, and Big data and Analytics solutions.
15/12/2014	Montech Holdings Acquires Breeze and Technology Effect	Montech Holdings has acquired Breeze and Technology Effect, two Cloud focused software and services companies. The aim of the acquisitions is to expand Monotech’s Cloud managed services business and develop new Cloud products.
17/12/2014	NSW Government Shared Services	The New South Wales Government and Infosys and Unisys have established a memorandum of understanding in order to provide shared ICT services to NSW government agencies.
18/12/2014	Infotech to Expand Melbourne Operations	Indian IT service provider Infotech Enterprises has announced it will expand its Melbourne delivery centre to cater to increased demand for outsourced services. Infotech Enterprises expects it will create 150 new jobs in Victoria by 2016.
19/12/2014	Optus Acquires Ensyst	Optus Business has acquired IT services vendor Ensyst to expand service offerings with enhanced managed services expertise.
19/12/2014	Forecast: Hybrid Cloud Growth	A recent study indicates hybrid Cloud solutions uptake will rise in 2015. Growth in this area has been attributed to benefits associated with combining private and public Cloud solutions, such as enhanced security while retaining cost savings.