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ASG wins deal to take coal miner into the cloud

ASG wins deal to take coal miner into the cloud

The deal involves SAP's cloud-based offerings

ASG Group has won a five-year contract to migrate Yancoal Australia’s (ASX:YAL) enterprise resource planning (ERP) systems into the cloud.

The win comes after a long relationship between ASG and Yancoal, a subsidiary of China’s Yanzhou Coal Mining Company, and publicly-listed on the Australian Securities Exchange (ASX).

Indeed, ASG has provided the mining company with SAP for years. However, the new deal sees ASG migrate Yancoal to the vendor’s cloud-based ERP services, opening up a host of products from SAP in the fields of mobility, internet of things (IoT), data management and analytics.

Under the terms of the deal, ASG will deliver SAP's ERP solution for 2000 users at Yancoal, hosted on Amazon Web Services (AWS).

The deal also involves an application managed service (AMS) and an infrastructure managed service (IMS) as well as the hosted platform.

“We’re delivering a consumption model where Yancoal pays as it uses, removing the traditional weighty burden of capex commitments that come with infrastructure refresh cycles and on-premise solutions,” ASG’s enterprise applications and analytics general manager, Gareth Flannery, said.

“We are delivering serious cost reductions here for Yancoal, but at the same time significantly enhancing how our client can use tech to drive efficiencies and great decision-making in its business,” he said.

According to Flannery, ASG’s ERP-as-a-Service (ERPaaS) offering was crucial to securing the contract. No doubt, the IT services provider’s existing relationship with the miner also played a role.

News of the deal comes as ASG Group, a subsidiary of Japan’s Nomura Research Institute (NRI),  welcomes Andrew Rose, the former chief operating officer of fellow IT services provider DWS’ (ASX:DWS), as its new head of operations.

The newly-created role will see Rose oversee the integration of ASG Group and its most recent acquisition, SMS Management & Technology (ASX:SMX).

Rose stepped into the new role following a fierce bidding war between his new company and his former employer of five years, DWS.


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Tags YancoalCloudASG GroupSAPERPDWS

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