Datacom close to sign-off on datacentre

Details on Wellington datacentre awaiting outcome of government IaaS contract

Plans by Datacom to build a new datacentre in Wellington are well advanced, says CEO Greg Davidson.

However, he is not disclosing any details until a decision is made on the Government’s planned infrastructure-as-a-service contract. Datacom is on a shortlist of three vendors to provide datacentre services. The others are IBM and Revera. The Department of Internal Affairs has indicated that two will be chosen.

“All of the time-lines are integral with infrastructure-as-a-service,” Davidson says. “It is one of the critical elements.”

The company recently reported increases in revenue and trading profit for the financial year ended March 31. Revenue was up 8.7 percent to $725 million, and trading profit before tax and impairment charges increased by 7.8 percent to $45.4 million.

However, net profit before tax fell from $42.1 million the previous year to $38.9 million. Net profit after tax was $22.3 million, compared with $30.2 million. It was affected by the new local accounting rules in relation to the deductibility of depreciation on buildings.

Davidson says the impairment charges relate to a small software development company in Sydney, which was closed during the year.

Commenting on the New Zealand performance, he says there were no obvious big wins but “a large volume”.

“This was unparalleled in Wellington where we won 22 of the 24 deals we bid for. It was about providing the right services at the right price.

He says the most notable feature of the Australian operation was “the push” of business in the regional States.

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