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Macquarie Telecom scores Dell EMC public cloud hosting deal

Chris Player | March 17, 2017
Macquarie Telecom informed shareholders of the co-location deal during an investor presentation on Thursday

Macquarie Cloud Services group executive, James Mystakidis,
Macquarie Cloud Services group executive, James Mystakidis

Macquarie Telecom will become the Australian home of Dell EMC’s public Cloud offering, Virtustream, thanks to a recent agreement between the two companies.

Macquarie Telecom informed shareholders of the co-location deal during an investor presentation on Thursday, 16 March.

The telco also revealed a recent co-location deal with global systems integrator Accenture. Both hosting contracts will be fulfilled at the company’s Intellicentre 2 facility in Sydney’s Macquarie Park.

While the size of the two deals was not revealed, Macquarie Telecom said its Intellicentre 2 facility was estimated to achieve an average revenue $4.5 million per megawatt (MW) by the 2019 financial year.

Macquarie Cloud Services group executive, James Mystakidis, told ARN the deal sits well with Macquarie’s go to market strategy.

“Every company out there is on a journey to the cloud, they are at various stages of their journeys to the cloud, and its all about hybrid,” he said.

“The deal with Virtustream covers two go to market strategies. We view them as a SaaS customer, because they need a datacentre and have reference architecture and it is around co-location, dedicated managed servers and VMware private cloud."

For Macquarie Cloud, Virtustream is also a go to market partner, and Mystakidis said Macquarie would provide services and support for the vendor when required.

As part of the deal, Macquarie has the potential to access Virtustream’s data centres in foreign markets, but Mystakidis said that was not a use case for the company at present.

Virtustream was acquired by EMC in May 2015 for $1.2 billion. In October of the same year, EMC and VMware revealed they would be combining their Cloud services portfolio under the Virtustream brand.

At the time EMC CEO, Joe Tucci, said Virtustream would generate hundreds of millions of dollars in recurring revenue across 2016.

This growth was said to be driven by enterprise cloud services, specifically hybrid cloud, managed services for on-premises infrastructure and Infrastructure-as-a-Service (IaaS) which fits well with Macquarie Cloud’s value proposition.

"Through Virtustream, we are addressing the changes in buying patterns and IT Cloud operation models that we are seeing in the market. Our customers consistently tell us that they are focused on their IT transformations and journeys to the hybrid Cloud." Tucci said at the time.

 

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