JSE-listed IT infrastructure company Datacentrix has scored a breakthrough for business partner IBM by winning a minimum six-month contract to supply expandable servers to the government. The value of the contract is conservatively estimated to be worth more than R24 million.
Datacentrix government unit director, Rainer Jeske says the deal represents a breakthrough for IBM since this is the first time the government is to implement Wintel servers manufactured by IBM.
The servers will be deployed in a mission-critical role across all government departments, a key requirement of the contract being 97% up time. "We expect a minimum 60 servers to be ordered over the next six weeks and an average of 40 a month thereafter," says Jeske. The retail price of Netfinity servers ranges from R70 000 at the low end to R300 000 at the high end.
"The government, through SITA, is on an IT development and expansion path to provide the very best services to its client, the South African public," says Jeske. "To this end, government`s systems have to be as good as if not better than those operating in the private sector. The supplier`s ability to service the product nationwide, and a sustained affirmative action and equity programme are some of the government`s requirements.
"We believe we won the contract on the strength of our extensive experience in supplying solutions and services to the government," says Jeske. "IBM Netfinity servers have gained rapid worldwide market acceptance since their launch about four years ago. In South Africa it is the server of choice for the mission critical IT operations of the banking and financial sector. IBM drew on its extensive experience delivering products and service to governments around the world, specifically in the United States and Europe.
"The high-end contenders are usually very evenly matched," says Jeske. "However, the government has a policy of spreading its contracts across IT suppliers, partly to spread the risk."
IBM recently won contracts to deliver 35 000 PCs to the government. IBM Program Manager for PC contracts, Danie Minnie, estimates IBM owns 20% of the government desktop market. "We`re particularly happy with this contract as it is the first time the government has chosen IBM branded servers," says Minnie.
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