IBM claims Logicalis integration success

IBM claims Logicalis integration success

IBM is claiming its acquisition of Logicalis Australia will allow the company to cater to a rising demand for networking and telecoms services.

IBM general manager for Integrated Technology Services, Terry Moloney, said the company was now using the skills acquired through the takeover to build up its services customers.

“We’re focused on monitoring the skills they [Logicalis] have now,” he said. “We’re enhancing this with our relationship with Cisco. Logicalis will continue as they were, but be supported by IBM’s financial strength and stability.

“We believe IBM can strengthen Logicalis’ presence in the networking services market.”

As previously reported in ARN, IBM acquired Logicalis from South African-based Datatec in March in a deal worth $88.5 million. Although Logicalis will continue to look after its existing customers, the business will be rebranded as part of its IBM Global Services during the next few months.

Moloney said a lot of the skills, facilities and staff created within Logicalis prior to IBM’s takeover had been left in place.

IBM has retained Logicalis’ Sydney, Canberra and Melbourne facilities and left the company largely intact, he said. “Logicalis had a strong, similar culture to IBM — and had services capabilities that enhanced ours,” Moloney said.

In particular, Logicalis offered expertise in providing telecoms convergence services, such as IP telephony, which IBM could not, he said.

“The momentum for IP telephony is strong,” he said.

“We had demand there for these services, but IBM had struggled to keep up with it.

“It’s a hell of an investment to make [into offering networking and convergence services]. Not many organisations have these skills on offer. It would have taken us a number of years to get to the level of skills offered by Logicalis.”

Business won since the acquisition includes a $1.9 million deal with the Australian Department of Defence to fit Sonar network infrastructure on its Collins-class submarines, signed in June.

Moloney quoted recent IDC figures, which estimated the networking consulting market would be worth $500 million in the next 12 months.

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