Global IT infrastructure service provider Savvis has signed a "strategic collaboration agreement" with Telkom, according to a statement released by Savvis today.
While details of the nature and value of the partnership are not readily available, Savvis says: "Under the terms of the agreement, Telkom will provide Savvis`s utility computing and managed hosting services to its customers, including local businesses and global organisations with operations in SA."
Savvis is a global hosting, network, applications and professional IT services company, reporting revenue of $190 million in the second quarter of 2006, with 2 000 employees and operations in 47 countries.
A source close to the issue, who cannot be named, describes the deal as "huge".
Driving down costs
The statement promises the partnership will allow local organisations to drive down business and IT infrastructure costs. It is understood that part of the alliance involves Telkom providing Savvis with network services in certain African regions.
Telkom`s chief sales and marketing officer, Wally Beelders, is quoted as saying: "Our strategy is to invest in new technologies that drive business growth and support our customers` expansion - collaborating with Savvis has allowed us to do this.
"Savvis has demonstrated its utility computing solution to be a highly reliable and robust platform from which we can launch new and exciting services, which help us and our customers stay one step ahead of the game."
Growing market
The multinational believes the South African IT sector ranks number 20 in the world and is growing at a rate of 8.5% per annum. "It is expected to reach R77 billion by 2010," it says.
Savvis expects that forging an alliance with SA`s fixed-line operator will enable it to expand its global footprint into the fast-growing technology market of Africa. It believes the partnership will ensure its customers with operations in Africa enjoy the same quality of service as those in Europe, North America and Asia.
"Telkom is one of the most forward-thinking companies in Africa and supports business growth opportunities for local, national and international businesses," says Richard Warley, MD of the EMEA region for Savvis.
Telkom this morning confirmed the agreement, but declined to comment further.
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