Gen-i plays down loss of Defence deal

TelstraClear portion valued up to $30m, Vodafone up to $20m

Gen-i is playing down the loss of a New Zealand Defence Force mobile and data deal, which Computerworld reported two days ago.

Details of the NZDF deal were offically released today. NZDF's CIO Peter Thomas says the TelstraClear WAN deal is worth $25 million to $30 million over 10-years. The Vodafone portion is worth $15 million to $20 million.

TelstraClear says the 10-year partnership with TelstraClear will see the NZ Defence Force armed with a dedicated 10Gbit/s advanced IP network called ENIGMA that will provide high capacity, ultra high-speed connectivity throughout New Zealand and beyond.

In a statement TelstraClear’s CEO Dr Allan Freeth says ENIGMA future proofs the NZ Defence Force.

“ENIGMA provides for the needs of three services as one force, covering the whole gambit of security, performance, flexibility, scalability, agility and cost effectiveness,” Freeth says.

“ENIGMA is a purpose built solution, modelled on our well tested and successful KAREN network that provides Next Generation telecommunications links for New Zealand researchers, educators and innovators.

"ENIGMA provides the NZDF with a solution that bridges the gap between the rigour and uncompromising nature of the military and the people and community elements of the Service,” he says

Gen-i, which separately won a $2.5 million deal to upgrade Building and Housing's voice and data network, says there have been a number of NZDF tenders over the last few months and it has had some successes. winning three multi-million dollar contracts covering supply of desktop and laptop PCs, peripherals and PABXs.

Gen-i says it has also been successful in the RFP bid to supply a portion of the data services to eleven core NZDF sites, plus mobile services.

"While we are disappointed not to have the opportunity to provide these services to NZDF, we are pleased to have been one of three vendors short-listed from a lengthy list. We’ve won 85% of the competitive bids we participated in over the last year," says spokesperson Carmela Salisbury on behalf of Gen-i's Wellington GM, Paul Wilson.

"We remain NZDF’s key ICT supplier and we are very excited by the opportunities we have to partner with them in the provision of a wide spectrum of telecommunications and IT services."

Gen-i says the lost business represents a small percentage of its overall business. It says its IT services business grew 26% in the last financial quarter and it is moving from being a core telecommunications provider to NZDF into the broader growth area of IT services.

It also says the mobile component of the deal was a new opportunity for Gen-i. as Vodafone was the incumbent for the majority 65% NZDF's mobile services. Meanwhile, NZDF has also offically announced the deal. It says the improved capabilities acquired in these contracts are required to provide modern telecommunications for the Defence Force. "The decision to go with TelstraClear and Vodafone was based on price, functionality, ease of upgrade, service delivery, superior global roaming and the potential gains from these strategic partnerships," NZDF says in a statement. “As a result of this agreement we will have telecommunications partners who will stand beside us for the next ten years,” Lieutenant General Jerry Mateparae says. “It will enable us to operate more effectively to address the security challenges of the future.” The NZDF’s CIO, Peter Thomas, says the long term nature of the contracts will allow the NZDF to form strong apartnerships with both Vodafone and TelstraClear so that as demand for cutting edge, high speed communication grows, the companies supplying these services will be able to invest in new technology knowing they’ll have the time to recoup their investment. “It’s a win for both the NZDF and taxpayers, as we have achieved significant cost savings, while at the same time, being able to enhance our technological capabilities. The long term nature of the relationship actually improves our ability to change and grow our telecommunications abilities to meet the changing needs of our modern Defence Force,” Thomas says. “The high speed network provides extremely reliable 10Gb links between the data centres and 1Gbit/s links between major camps and bases. There’s also an easy upgrade to 40Gbit/s and beyond,” he says. “It’s worth noting that Gen-i, despite missing out on this contract, remains a significant and valued information technology partner with the NZDF,” says Thomas.

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Tags defencegen-iNZDFVodafoneTelstraClear

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