iiNet will provide cloud services on a pay-as-you-go, consumption-based, infrastructure-as-a-service model to the South Australian Departments of Premier and Cabinet; Planning, Transport, and Infrastructure; and Communities and Social Inclusion.
The cloud will be hosted in iiNet's two Adelaide-based datacentres, iiNet general manager for Business and Government Daryl Knight told ZDNet.
"This infrastructure will be there for government to use. We're very confident there will be significant workloads that will be put onto this platform, and we're confident it will be there for some time, provided we deliver a good service and deliver value for money for the state," he said.
"It's spread across two datacentres iiNet owns in Adelaide, and there is a natural advantage there that appeals to the state, because the infrastructure is located in the state it resides, and we've got connectivity straight into the state's internal data network."
iiNet will also offer backup services to the government.
SA Public Sector Minister Susan Close said that the deal is in line with the state's cloud services policy announced in April.
"In line with the government's SA Connected ICT strategy, it allows agencies to invest in services rather than buying hardware and software," she said in a statement.
"This solution improves agility for state government agencies with no upfront costs, and provides the ability to spin up or shut down servers as required in minutes instead of months. Consumption-based pricing requires no minimum spend.
"With the rapidly maturing cloud market, we are now at the point where government agencies can benefit from quicker deployment speeds, greater flexibility, and improved value for money by using this model through iiNet."
Knight said that the deal is a continuation of Internode's long history with South Australia, including supplying internet to the government for 20 years, and the recent construction of the Adelaide free Wi-Fi network.
"This deal demonstrates we're broadening our reach into government beyond just internet services and Wi-Fi services."