Networking specialist ServiceNet has made a foray into the Australian "netsourcing" market with the launch of its Sydney data centre last week and the immediate signing of a deal with Andersen Consulting to operate its Lotus Notes infrastructure and operations.
According to ServiceNet's president and CEO, John Whiteside, its initial deal with Andersen covers installation, management and maintenance of a network infrastructure and the consequent delivery of business solutions.
Explaining the general advantages of "netsourcing", Whiteside describes the process as the creation of a company's Internet technology and its consequent business capabilities. "Companies can rely on us to offer a range of non-proprietary technology," Whiteside claimed, adding that the centralised management was also a benefit.
"Netsourcing also has a fixed subscription cost. It allows businesses to avoid being involved in aspects of their businesses that are not fundamentally relevant to their organisations."
ServiceNet is the creation of Andersen Consulting and GTE and is relying on the established contacts of the global duo to consolidate it in the netsourcing market. Whiteside asserts this large client base has the potential to offer clients large partnership options.
ServiceNet's Asia-Pacific infrastructure is comprised of data centres in Sydney, Hong Kong and Tokyo, according to Asia-Pacific director Anu Asar. "These centres have access to ServiceNet's global voice and data services network."
According to both Whiteside and Asar, these advantages allow businesses of a like mind to Andersen to outsource the implementation and management of their knowledge capital and the increasing complexities of doing business, especially in the IT industry.
Demand for these services has grown to such an extent that the $US37 million company is expecting to grow to $US70 million by the end of this year, with the new data centre contributing approximately 20 per cent to the growth.
The changing focus of the business will be on the SME market, which, according to Whiteside, will be provided with a competitive edge in trying to keep pace with larger companies. The focus on the lower end of the market is also fortuitous for ServiceNet as it eliminates some of the competition that the emergence of vendors such as Oracle and telcos like Telstra pose.