Centrelink signs four-year deal with IBM

IBM has signed a four-year deal with Centrelink to provide mainframe capacity and associated software and services and to establish a world-class Linux laboratory.

The deal includes data centre optimisation and capacity planning, transformation of internal business processes, channel management support and data centre relocation.

While unwilling to disclose dollar figures, Centrelink is the Federal Government's biggest agency and is a show of support for the adoption of open source.

Centrelink is the world's twelfth largest processing organisation -- processing 2.9 billion online transactions a year. Operating in an environment which sees Centrelink's role constantly evolving, this agreement allows Centrelink and IBM to work together to determine information technology options that can improve flexibility, reduce complexity and costs, and provide long-term capacity growth.

Centrelink chief executive officer, Sue Vardon, said Centrelink ranked fourth in Australia in terms of the size of its IT network distributions.

"IBM has been a major supplier of mainframe services and technologies since Centrelink's inception in 1997. During this time, Centrelink has developed its platforms on IBM technologies to deliver processing capacity in excess of 15,000 million instructions per second."

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