SA govt extends HP computer deal

The South Australian government has extended a contract with computer giant Hewlett-Packard for the provision of mainframe services.

The government’s existing eight-year deal with the company expires in December 2014 but will now be extended to more than 11 years at a cost of $119 million.

Finance Minister Michael O’Brien said the new deal would provide increased capacity and save the government more than $3 million.

He said it will satisfy the government’s current and projected processing requirements for the next six years and reduce the risk of disruptions with immediate access to additional capacity.

“This agreement sees the government gain the operational and performance benefits associated with new infrastructure without having to purchase, own, maintain and manage that infrastructure,” the minister said.

“By spreading the costs over a longer period this new extension, which will expire in May 2018, will achieve approximately $3.1 million in savings over the next six years.”

The world’s large computer producer, Hewlett-Packard recently announced a global restructure, including the planned axing of 27,000 jobs worldwide by 2014.

The company said the restructure was designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders.

It was also expected to deliver the company more than $3 billion in savings.

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