Software vendor Micro Focus has been awarded two contracts worth over $17 million with the Department of Human Services (DHS) through an entity called Entco Australia.
Entco Australia was the entity created in September 2016 when HPE Australia started the process of transferring staff from its software business in relation to the spin-merger of its software business with Micro Focus.
The first contract awarded on 8 August for computer services is valued at $8.1 million, which covers the enterprise grade solution Micro Focus owned NET IQ software and includes professional support services, training and maintenance.
"This contract provides for maintenance and upgrades of software and offered the best value for money," a spokesperson for the department told ARN.
The contract runs for two years; however DHS expects the deployment to take 13 months.
Meanwhile, the second contract, valued at $9.6 million, is for Service Manager software also owned by Micro Focus.
In this case, the two-year contract provides for maintenance and upgrades of Service Manager and includes related support and maintenance.
Both contracts were awarded through a limited tender process in which Entco Australia the only provider as the goods or services needed can only be provided by the company "and there is no reasonable alternative or substitute" that can to protect patents, copyrights, or other exclusive rights, or proprietary information.
In early September 2017, Micro Focus completed the spin-merger with HPE's software business doubling its size and making it a $4.5 billion provider with 40,000 customers around the world.
“Eleven days ago we were a $1.4 – $1.5 billion company," McNulty told ARN at the time. "We are about $4.5 billion dollar company and we got 18,000 employees, so we got a massive change in terms of scale and product portfolio."
The total number of HPE Australian staff transferred to the new entity (Entco) is close to 280 people with both businesses combined having more than 350 employees in Australia.
A total of 12,000 employees worldwide were expected to be transferred to the new business which now employs 18,000 people, with 3,500 operating in the Asia Pacific region.