17 operators keen on NSW data centre consolidation plan
- 12 January, 2010 11:46
- Comments 1
Seventeen data centre operators have thrown their hats into the ring to help the NSW government consolidate 130 facilities down to two.
The organisations, which include some of the country's most high-profile operators, resonded to a request for Expressions of Interest process opened up in October last year.
The state government is looking for providers to assist with the "design, construction, commissioning, financing and provision" of service over a 20-year period for what is being called the Data Centre Reform project.
The objectives of the project include reducing the cost of the state's data centre needs and minimising the environmental impact.
A request for tender is expected to be opened prior to the end of March with facilities fully operational in 2011.
The list of 17 organisations:
- Australian Centre For Advanced Computing And Communication
- Canberra Data Centres
- CSC
- Datacom Systems
- Enterprise Data Corporation
- Equinix Australia
- Fujitsu Australia
- Global Switch Property
- Gresham Rabo Management Limited
- Leighton Contractors
- Macquarie Capital Group Limited
- Macquarie Telecom
- Oracle Corporation Australia
- Sun Microsystems Australia
- The Trustee for the Plenary Group Unit Trust
- Tier 5
- Verb IT
The NSW move mirrors that of the Federal Government, which in September chose five data centre providers to service Federal Government agencies while they develop whole-of-government strategies as part of the Gershon Review.
The five were Polaris Data Centres, Canberra Data Centres, Fujitsu, Global Switch Property and Harbour MSP. The whole-of-government strategy is yet to be released.
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Comments
PG
Let's take costs first. Outsourcing is very expensive to start with. I can hear the prospective vendors scrambling like rats from here to get a taste. Phone calls a many, lunches, dinners and deals. However, how long will it be, once the 10 year contract is in place, before the successful vendor ramps up its costs knowing it cannot be removed for a long time? Vendors cannot predict IT Infrastructure costs into the future and therefore will not agree to an incremental rise in charges over the period. Case in point was the 90% increase in outsourcing costs in its FIRST YEAR during the Victorian Kennett days when an IT services mistake was realised and bought back in-house. Taxpayers will be forking out big time to re-instate personnel, equipment and systems once the vendor/NSW Government relationship breaks down. IF this must go ahead, at the very least ensure an Australian company gets it.
Taxpayers can expect Service implementations to be slower due to an extra leg in the support chain. As it stands, business gets a request, the IT department services the request. Now it will have to go from the business to the local IT department out to the vendor, get actioned, QA'd, possible bounceback, QA'd, back to local IT, to business and out to the taxpayer as a new service.
People First - A NSW Government initiative. What a laugh. This initiative will "create" 500 jobs? Yes, for the vendor, not the current workforce that are in the roles presently. They will disappear replaced by much higher paid resources. More government "spin". Outsourced services and equipment are "maintained" by a third party hence the pride of having a 99.99 uptime no longer exists for the coal face IT people of the organisation.
This "initiative" arrives under the guise of "collaboration" and spruikes energy and cost reduction. Energy reduction is already a major concern in existing data centres and being met. Cost reduction??? You've got to be kidding... where? Outsourcing is a very bad idea.
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