Wheeling & Dealings: Telstra Improves O2 Uptake with $60 million Cloud Buy

By Doug Barney

Aussie-based Telstra is hoping to strike it rich in the down under cloud market by adding network integrator O2 Networks to its fold.

Telstra shelled out no short of a reported $60 million for the privilege of getting an O2 injection. O2 creates networks for Australian government agencies and financial concerns. So what do you get for $60 million Australian dollars? In this case O2 offers 100 employees and some 370 paying clients.

Telstra is, at least in part, buying its way deeper into the Aussie cloud market, having shelled out $100 million last year to buy the NSC Group.

“As our customers shift towards cloud-based environments, they increasingly require capabilities to securely integrate networks, data centers and cloud-based applications,” said Telstra’s Network Applications and Services (NAS) Executive Director Michelle Bendschneider.

“O2 significantly enhances this capability within Telstra’s NAS portfolio and this acquisition is consistent with our strategy of providing advanced network-based services that are highly valued by our customers. O2 have a reputation for deep-domain expertise and speed to market with emerging technologies including wireless network integration and next generation security threat detection and mitigation solutions. We value O2’s consulting-led approach to engaging with customers, ensuring the right solutions are developed rather than just focusing on the underlying technologies that are delivered.”

The two companies have worked together for years, and as such hope for a good fit.

“We’re excited by the opportunity for O2 to grow as part of Telstra and to provide the same excellent service we’re known for to even more customers. We have a long history of working with Telstra and we know that O2 will be an excellent fit. We also look forward to enabling our people to broaden their career opportunities within Telstra,” said O2 Networks Managing Director Euan Prentice.

O2 Brand has Oxygen – for now

Telstra’s Bendschneider says O2 brand will live on, at least for now, and that the entire O2 staff still have jobs.

Edited by Cassandra Tucker

MSPToday Editor at Large

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