Telstra's cloud revenue grows by a third

Third year of revenue growth for telco's Network Applications and Services business

Red Hat launches global certified Cloud and service provider program

Red Hat launches global certified Cloud and service provider program

Telstra has reported year-on-year cloud revenue growth of 33 per cent for the 12 months ending 30 June.

Cloud revenue hit $286 million in FY15, up from $215 million in FY14.

Overall revenue for the telco's Network Applications and Services (NAS) business, which includes cloud and unified communications, was up 23 per cent. Total NAS revenue hit $2.4 billion, Telstra reported.

It's the third consecutive year of revenue growth for NAS, Telstra CFO Warwick Bray said at a briefing on the telco's full year results.

The biggest growth was in NAS's industry solutions category, with revenue up 41.6 per cent to $636 million.

"Industry solutions revenue growth of 41.6 per cent was principally due to increased NBN commercial works and contributions from Telstra SNP Monitoring," Bray said. (The Telstra SNP Monitoring business offers monitoring systems solutions, including alarms, CCTV and access control.)

Unified communications revenue grew 8.1 per cent to $762 million, managed network services grew 21.8 per ent to $592 million, and integrated services grew 31.5 per cent to $142 million.

"We saw strong growth across all major NAS product categories due to existing and new contracts, with pleasing contributions from recent acquisitions," Bray said.

The acquisition of O2 and BridgePoint contributed to the growth in managed network services revenue, the CFO said.

"Across managed network services and unified communications, our enterprise customers are adopting standardised offerings to a much higher degree, influencing improved speed, quality and reliability for our customers, and lower costs," Bray said.

The international contribution to NAS revenue was $99 million, up 38.9 per cent.

In data and IP during FY15 Telstra saw a revenue decline of 2.9 per cent as customer migration from legacy products onto IP solutions continued, Bray said.

Global connectivity revenue was up 14.8 per cent on a local currency basis, the CFO said.

That includes most of the revenue from Pacnet. Telstra completed its acquisition of the network-as-a-service provider in April.

"Pacnet provides connectivity, managed services and data centre services to carriers, multinational corporations and governments in Asia, and will substantially extend our reach and asset base in the region," Bray said.

"We are currently engaged in the integration process and we are on track to deliver previously announced cost synergies and use this asset to accelerate our growth in global connectivity and NAS."

Overall Telstra reported a net profit after tax of $4.3 billion for the full year.

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