Telecom NZ buys cloud desktop specialist Appserv

Buyout boosts telco's cloud capabilities as it heads into a major rebranding campaign.

Telecom New Zealand has inked a conditional agreement to buy cloud services specialist Appserv.

Telecom chief executive Simon Moutter said that the acquisition provides a major new piece in the "cloud jigsaw" after significant investment across the business in cloud services.

“We see this as a strategic business move giving the Telecom group a very strong New Zealand cloud services portfolio. The acquisition of Appserve is an excellent complement to the purchase in 2013 of Revera and the ongoing investment we are making in data centres,” Moutter said.

Telecom Retail CEO Chris Quin said thousands of businesses already supported by Telecom and its ICT services arm, Gen-i, want to take advantage of the cloud but need a hand to get there.

Auckland-based Appserv has capability in providing cloud and desktop ‘as-a-service’ offerings, with customers across New Zealand, Telecom said.

“Revera is a cloud computing specialist that provides cloud solutions predominantly for government and corporates, while Appserv brings specialist cloud desktop-as-a-service solutions for a range of business sizes, particularly small to medium sized," Moutter said.

Telecom bought Revera for NZ$96.5 million last year.

Moutter said Appserv adds to Telecom's existing strengths in cloud infrastructure, mobility, managed ICT and platform as a service.

"Gen-i is making big strides in all these areas. We have secured a number of significant new IT as-a-service contracts. We have added new or imminent data centre business totalling in excess of 250 racks since the beginning of 2014. Revera is continuing to grow strongly and perform well," he said.

Revera opened a new datacentre in Wellington last year that Moutter said is now 100% allocated. A third centre is due to open in October. In Christchurch, a new green-fields centre opened in August and is over 30% full while in Auckland, a new high resiliency datacentre in Takanini is due to open in October, with 38% of capacity already allocated.

Telecom is about to embark on a brand change to "Spark". Auditions are being held for a major TV ad campaign and agencies across the country are preparing to bid for work on the supporting campaign.

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