Absa and Telkom are officially signing a five-year R1.7 billion deal today, for the fixed-line operator to supply one of SA's largest retail banks with integrated connectivity.
According to Telkom CEO Reuben September, the utility will provide Absa with full virtual private network (VPN) services linking 2548 branches, ATMs and data centres.
The deal also includes a redundancy strategy and a disaster recovery system.
Absa CEO Steve Booysen says the bank's wide area network (WAN) was analysed and needed a revamp, adding that the new design will help align Absa with the technology of its parent company, Barclays.
"We turned to a company that has a proven track record. This is an integral aspect of modernising the group's internal information technology systems and keeping abreast with the industry."
Absa's new Telkom WAN will be on the utility's next-generation network. Absa is also one of the larger customers to have access to Telkom's R30 billion network.
"The deal represents a coup to us. It shows that the NGN is now showing a return on investment," adds September.
Managed roll-out
The frontload of the network rollout, which will be the link to Telkom's core network, will take place over the next 18 months. "After that it will be growth and enhancements to the network. However, this is not a hard and fast rule," says September. He says, while Absa may be upgrading or changing existing WAN equipment, it will not follow a rip and replace model. "There will also not be a one-for-one replacement system; there will be ongoing enhancements and changes."
He says the roll-out depends entirely on a timeframe set by Absa. "We will follow Absa's lead on the roll-out. If they find a particular branch needs to be connected faster than the others, then we will facilitate that." Part of the handover will require Telkom to switch from its Nortel communications services to Cisco's technology, to facilitate the migration to the MPLS network.
September says the most important aspect of the network will be the fact that Telkom will be dealing with networks that require a "failsafe" transfer. "The banks all deal with mission critical information and we are guaranteeing Absa an environment with the smoothest transition possible. "After the change over, we will also guarantee data redundancy."
The project is expected to facilitate the expansion of Absa's branches, and provide connectivity in real-time. The primary network technology will include a multi-protocol label switching network (MPLS), and end-to-end VPN and disaster recovery.
The utility says the project will facilitate job growth. "There is a governance structure in place at Telkom to help manage which employees will work on which accounts. It's about managing delivery, operations maintenance and surveillance of the network." September says there are several aspects that will include management bringing on outside partners to manage third-party products, Cisco being one such partner.
"To be a successful telecommunications provider, you have to do more than just lay cable. It's about the service level agreements and a strong knowledge base. We believe we have all of this in place, and the Absa contract really validates that," says September.
While September says there are discussions with other SA big four banks, the deals may be completely different from the one signed with Absa today.
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