Reseller Volante has hauled in a record $12 million managed services deal with oil and gas company Santos.
The four-year deal sees Volante Systems, made up of the procurement and managed services divisions of the ASX-listed Volante Group, support Santos's entire IT infrastructure and provide support services to Santos employees in Australia and around the globe.
Volante will be providing the energy company with IT infrastructure support for its Oracle financials and vertical applications running on Sun Microsystems' Unix-based systems, as well as help-desk support to Santos's 1,500 employees. Thirty of Santos's help-desk and infrastructure support staff, mostly in Adelaide and Brisbane, will be transferred to the Volante business.
The deal is the largest managed services contract Volante has ever signed. Managing director Hugh Bickerstaff said it creates a point of reference for the company when it approaches other large organisations. "We have had plenty of great managed services deals, but not of this order of magnitude," he said. "It really puts us in a new league."
Managed services still only make up less than 10 per cent of the revenue of Volante Systems, the procurement and managed services arm of the Volante Group. However, it is that part of the business that is growing the most rapidly, according to Bickerstaff. "There are some very strong opportunities including deals of this magnitude that are currently in the pipeline," he said.
Santos already contracts Volante Systems for IT procurement, and it has long been the goal of the reseller to begin cross-selling its services to its large and loyal base of procurement customers. But with the managed services and project management divisions now rolled into Volante Systems (the application development business will remain as Volante Solutions), Bickerstaff said it is less an example of cross-selling rather than an indication that customers want to work with a single organisation that can offer all of their IT products and services needs.