Logical loses EDS deal

Local integrator Logical Networks has lost a services contract with EDS worth about $1.8 million. The deal, secured about two years ago, subcontracted Logical to support both EDS's internal data network infrastructure and Telecom New Zealand's.

Local integrator Logical Networks has lost a services contract with EDS worth about $1.8 million.

The deal, secured about two years ago, subcontracted Logical to support both EDS’s internal data network infrastructure and Telecom New Zealand’s.

Sydney-based EDS spokesman Brian Finn confirms that the partnership has ended “after a review of the contract”. He declined to disclose further details.

“All I can say at this stage is that the contract will go to another organisation in New Zealand.”

It is understood the contract is likely to go to Datacraft.

The integrator’s Wellington-based managing director, Robin Hartendorp, declined to comment, directing questions to EDS.

“We would like to have the deal but it is up to EDS to make the decision,” Hartendorp says.

Logical’s Wellington-based managing director, Murray Jurgeleit, says his company has to accept the decision.

“We do not like losing any contracts, but we can’t win all of them.”

The EDS contract, which is understood to run out on October 10, was Logical’s third largest maintenance contract.

Asked if the termination had anything to do with the services provided by his organisation, Jurgeleit says: “We understand the contract has been awarded to another party based on pricing.”

He admits the EDS contract was significant, but says Logical has secured even bigger contracts. “Our Police contract is much bigger than the EDS one. We also have the Kiwibank rollout, which is huge.”

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