UPDATED 12:44 EDT / JULY 07 2011

Is IBM Downgrading? Clients Look Beyond Big Blue for Data Centers.

IBM’s Newton center is soon to be closing, but a newer, $80 million-state-of-the-art center was launched by IBM to replace Newton center.  Though there’s already a better replacement planned, two IBM data customers have already opted to look for other data services providerBNZ – Bank of New Zealand, has chosen Datacom as their new provider, and the Ministry of Education has chosen a Unisys facility for managing its data services.  The move was made to explore better opportunities, services and facilities.

“BNZ would have to move its production hardware to a new provider when the aging Newton centre closed,” Chief Operating Officer Stephen Mockett said.  “After close to 15 years with IBM’s centre, the bank had gone to the market to find the best datacentre for its needs, Mr Mockett told NBR, and had looked at a wide range of issues.

“Ministry of Education chief information officer Leanne Gibson released a statement today which said the ministry’s contract with IBM had expired and it would be moving its alternate data centre from Newton to a Unisys facility, which operates a data centre in Ellerslie.”

Big Blue is also trading lower since contract signings have declined by 14% due to weak public sector demand.

But all is not lost.  Air New Zealand has just renewed a 10-year contract with IBM though they encountered a mishap with the Big Blue last year, costing their passengers to be delayed by two hours.  Issues have been resolved and the relationship between the two is smoother than ever.  And to add the cherry on top, IBM has collaborated with KEPCO to build the Total Operations Center.  They will provide consulting services and software development to create the integrated energy management system for the center.

IBM may be losing some customers, but better opportunities are coming their way.  No need to fret, Big Blue!


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