Macquarie Telecom scores hosting deal with US software company

Deal worth $1 million to assist Heiler Software in its foray into the Australian marketplace

Macquarie Telecom (ASX:MAQ) has entered into a two year hosting deal with US-based Heiler Software to aid the company’s foray into the local market, enabling it to offer an outsourcing model to Australian organisations.

Under the million dollar partnership, the telco will provide the company, an enterprise product information management (PIM) and enterprise e-procurement solutions provider, with a fully redundant managed hosting platform, servers and SQL cluster.

The contract also allows the software company, which recently won an agreement to support the NSW Department of Education and Training, to address international data residency compliance hosting issues and potentially eliminate network latency.

“With a data centre located in Stuttgart, Germany we identified that in order to provide the best user experience to organisations in Australia and to eliminate international compliance concerns we needed to provide our services from a locally hosted source,” Heiler Software chief executive, Greg Wong said. “Macquarie Telecom’s managed hosting infrastructure allows us to do this securely and with low latency. As a result of the agreement we are now pursuing a number of public sector and business contracts in the Australian market.”

Commenting on the deal, Macquarie Telecom managing director of hosting, Aidan Tudehope, said in order to be a player in government e-procurement in Australia, organisations must show they can deliver the service uninterrupted and to the highest levels of security, a task he deems almost impossible from a data centre hosted offshore.

According to Tudehope, the partnership will provide the company with the IT infrastructure, coupled with security and service level guarantees in an attempt to expand the company’s local business.

As reported by Computerworld Australia, Macquarie Telecom’s hosting business continues to be one of the telco’s major profit contributors with the company posting an increase of 102 per cent on net profits after tax of $9.7 million for the half year to 31 December 2010.

In February, the company reported its earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations was in line with its predicted earnings at $20.3 million, a growth of 48 per cent for the six months to 31 December 2010.

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