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Dell and NEC quit Finance’s data centre panel

by Pallavi Singhal •
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Both Dell and NEC have withdrawn from the Department of Finance and Deregulation’s Data Centre Facilities Panel, with NEC citing a “decision to focus on the provision of in-demand cloud data services” as part of its reason for leaving.

According to amendments made to the Standing Offer Notice on Austender, both vendors were removed from the panel on 18 February 2013.

“This move is also consistent with NEC Australia’s vision to become one of Australia’s leading end-to-end IT and communications solutions and services companies,” an NEC spokesperson told Intermedium.

The mandatory whole-of-government panel for leasing data centre space was established in March 2011 and is due to expire on 5 February 2017. It is open to all Federal, State and Territory government agencies.

NEC was eligible to provide data centre facilities at the Polaris Data Centre in Springfield, Queensland under the panel.

Dell was added to the panel in November 2011 for its planned data centre in Hume, ACT but construction on the data centre has not yet begun.

According to Intermedium data, 16 contracts with a total value exceeding $300 million have been signed through the panel.

So far, seven agencies have procured data centre facilities through the panel.

Only three of the panel’s 18 suppliers have won contracts.  Neither Dell nor NEC have won contracts through the panel.

Canberra Data Centres is the leading supplier with seven contracts worth over $270 million signed through the panel since its establishment. Its major contract with the Department of Human Services (DHS) is worth $223.7 million for a 10-year lease expiring in November 2021. Other significant deals include a $45.6 million 10-year arrangement with Finance, also expiring in November 2021.

The next leading supplier, Metronode, signed its sole $22.1 million deal with the Bureau of Meteorology (CBOM), expiring in June 2022.

Transact Capital Communications, the last supplier to have signed contracts through the panel, has won eight deals worth a total of $10.6 million. Its major contract is a $9.7 million deal with Finance.

The standard 10-year contract terms emerging through the panel are consistent with Finance’s aim of establishing an arrangement that derives better pricing through entering a small number of long-term contracts.

Government agencies that have procured through the panel are:

  1. DHS with four contracts worth around $224.1 million
  2. Finance with seven contracts worth approximately $55.7 million
  3. CBOM with one contract worth $22.1 million
  4. The Australian National Audit Office with one contract worth $650,771
  5. The Australian Crimes Commission with one contract worth $633,000
  6. The Family Court with one contract worth $379,687
  7. The Department of Sustainability, Environment, Water, Population and Communities with one contract worth $122,000

The Data Centre Facilities Panel is expected to save the Government over $1 billion over the next decade.


Related Articles:

Three new vendors added to whole of government data centre panels

Dell added to whole-of-government data centre panel

Macquarie Telecom added to Data Centre Facilities and IBNC panels

For more information, please contact the Editor (02) 9955 9896.

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