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ATO signs $783m HP contract, opts out of AGIMO’s data centre panel

by Paris Cowan •
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HP Enterprise Services has released new detail about its $738 million Centralised Computing Services contract with the Australian Tax Office (ATO), revealing that the agency will be transitioning its data centre requirements to an HP next-generation facility, possibly in Western Sydney.

This is despite HP’s noteworthy absence from the recently announced Whole-of-Government Data Centre Facilities panel, which is mandated for use by FMA Act agencies.

A spokes person for the ATO told Intermediumthat the agency has received an exemption from the Australian Government Information Management Office (AGIMO) to go ahead with the agreement.

“The Whole-of-Government data centre panel was not in place at the time the ATO's Centralised Computing Request for Tender was released. As the ATO did not want to release a revised tender an exemption was sought from AGIMO,” he said.

The absence of the ATO will significantly impact the value of contracting through the Data Centre Panel. The agency was the sixth largest procurer of ICT in the Federal Government market in the 2009-10 financial year according the Intermedium’s Annual Market Overview Report.

The cyclical nature of managed services contracting drives great variations in ATO contracting from year to year and Intermedium predicts that the ATO will top the ICT procurement ranks for the 2010-11 financial year due to the outsourcing contracts it has signed in 2010.

The five-year agreement will bring the total value of the managed services relationship between HP and the ATO to $4.04 billion since 1999, according to Intermedium’s Infrastructure Management Outsourcing Report 2011. This includes the term of the ATO’s agreement with EDS, which was acquired by HP in 2008.

In addition to data centre services, the agreement will cover the modernisation and extension of the ATO’s data centre automation tools, and provision of managed mainframe, server management and storage management services.

HP will also replace the ATO’s current midrange servers with mostly virtualised Intel and UNIX-based hardware, and its storage with HP Storage Works P9500 storage arrays. It will also provide secure gateway support to allow secure internet access to ATO systems.

The finalisation of the $738 million contract between the ATO and HP was covered by Intermedium upon its signing in November 2010. IBM was the second-placed supplier in the running for the managed services deal.

In other market activity for HP, the company has been included on the Whole-of-Government Data Centre Migration Panel, which was announced last week by Special Minister of State Gary Gray. The full panel includes:

  • Colliers International Project Services
  • Dell Australia
  • Dimension Data
  • Fujitsu Australia
  • Hewlett Packard
  • The Frame Group



Related Articles:

Outsourcing report reveals the value of incumbency in Federal Government ICT market

Federal Government ICT: A $6 billion market?

Contract data reveals winners and losers in Federal Data Centre Strategy

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  • Federal
  • IT Services
  • Treasury
  • ATO
  • Australian Taxation Office (ATO)
  • centralised computing services
  • Colliers International Project Services
  • Dell Australia
  • EDS
  • Fujitsu
  • Hewlett Packard
  • HP Enterprise Services
  • ICT Outsourcing
  • Managed Services
  • The Frame Group