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Cloud rise drives Telstra’s enterprise push

James Hutchinson | Feb. 7, 2013
Telstra identifies cloud computing products as a critical growth area after it boosted a 25 percent growth in revenues in the first six months of 2013 financial year.

Cloud rise drives Telstra’s enterprise push

Image: Josh Robenstone

Telstra chief executive David Thodey has pinpointed the company’s cloud computing products as a critical growth area for the business after it racked up a 25 per cent growth in revenues in the first six months of the 2013 financial year.

Mr Thodey told analysts during a results call on Thursday that cloud services had garnered 16,000 users to date, with 3000 more companies signing up over the last six months. He said significantly more ‘seats’ - or unique company employees - used the service.

Though the company did not break out individual revenue for cloud services, it helped drive a 10.6 per cent growth in revenues to $636 million for the company’s network applications and services division, which manages cloud computing and core telecommunications products for business.

The company on Thursday posted a $1.6 billion profit after tax and non-controlling interests for the half, an 8.8 per cent growth on the previous year.

Mr Thodey said cloud services - which offer online access to computer hardware or software from Telstra-managed infrastructure - were “no longer a glean in our eye”.

“It is actually a very critical part of our business,” he said.

The company has pushed for several years to introduce cloud services to large enterprises and government in Australia, gaining key contracts with construction giant Komatsu, Australia Post and a contract to host the federal government’s personal e-health records.

It also resells Microsoft software from Singapore data centres to small and medium businesses, an area Mr Thodey said had seen particularly strong growth.

Telstra has redoubled efforts on building the cloud computing business since appointing IBM executive David Burns to lead the network applications group.

It attributed some of the $1.8 billion capital expenditure budget for the first six months of the financial year on refitting existing buildings to be used as data centres and invested in a 31 per cent share of IPScape, a software-based call centre business, through its venture capital arm.

The previous executive in charge of Telstra’s cloud services, Ashley Lazaro, left the company in August 2011 and recently joined NBN Co with a similar purview.


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