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IBM lands $597 million contract with telecom company


IBM Corp. has landed a $597 million contract extension to supply technology services to Telstra, the largest telecommunications company in Australia.

Telstra, which has 9.4 million traditional telephone lines and 9.2 million mobile phone accounts in Australia, uses IBM to handle a variety of tech services. For instance, IBM builds and manages more than 3,000 computer servers, software and tech systems for Telstra — the largest tech network in the country after the Australian government.

Under the renewed contract, IBM will simplify Telstra’s tech infrastructure and improve its performance.

“This is a significant agreement for IBM as it builds on our strong relationship of more than 20 years,” said David Burns, IBM Managing Director for Telstra.

The five-year contract, an extension of an existing agreement between the two companies, is the latest example of how Armonk-based IBM has used such services contract to hold up better in the recession than some competing tech companies.

“As a testament to its ongoing strength, IBM has gained market share compared with its top rivals in enterprise software and services and maintained its share in servers while improving profitability in each business segment during the past five years,” Morningstar analyst Rick Hanna said in a research report.

This entry was posted on Tuesday, June 9th, 2009 at 1:06 pm by Jay Loomis. You can follow any responses to this entry through the RSS 2.0 feed.
Category: Contract



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Business in the Burbs is our online news blog about businesses based or operating in the Lower Hudson Valley. Visitors here will also find items of interest to consumers in the region. Most contributions are from business reporters and editors covering Westchester, Rockland and Putnam counties.


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