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Gen-i moves in on IBM's Air NZ business

Gen-i has confirmed it will design, build and run a new secondary data centre for Air New Zealand. Currently, the airline's secondary data centre - which NBR understands is used for disaster recover - is managed by IBM at a Nelson Street, Auckland fa

Chris Keall
Fri, 20 Aug 2010

Gen-i has confirmed it will design, build and run a new secondary data centre for Air New Zealand.

Currently, the airline's secondary data centre - which NBR understands is used for disaster recover - is managed by IBM at a Nelson Street, Auckland facility.

Air New Zealand put part of its data centre business out to tender after an October 11 outage at IBM's Nelson Street facility caused day-long, holiday-season ticketing chaos - which in turn prompted the airline's chief executive, Rob Fyfe, to let loose with a blistering email to staff:

In my 30-year working career, I am struggling to recall a time where I have seen a supplier so slow to react to a catastrophic system failure such as this and so unwilling to accept responsibility and apologise to its client and its client’s customers.

“We were left high and dry and this is simply unacceptable. My expectations of IBM were far higher than the amateur results that were delivered yesterday, and I have been left with no option but to ask the IT team to review the full range of options available to us."

The secondary data centre operation will move to Gen-i's Airdale Street facility - also in central Auckland.

Gen-i is Telecom's IT and services division; its existing data centre complex at Airdale Street interconnects with Telecom’s main Mayoral Drive exchange.

While Gen-i already holds a telecommunications contract with the airline - is actively looking to broaden its data centre business.

But IBM retains Air New Zealand's core data centre business with a contract that runs through until mid-2012.

A spokeswoman for Gen-i told NBR that Air New Zealand commissioned an independent assessment by a third-party expert, AECOM, to analyse the shortlisted providers (Gen-i and one other) during the bid process:  "AECOM sent consultant engineers over from Aus to evaluate our data centre capability. That clinched the bid for us."

Also helping to cinch the deal for Gen-i: the fact that IBM's new, $80 million state-of-the-art data centre in East Tamaki, Auckland, is not yet ready for operation. 

"IBM supports Air New Zealand’s decision to move from the Nelson Street site, having decided not to enter into formal discussions with the airline about their data centre requirements at this time," said a spokeswoman for the company.

"IBM continues to enjoy a positive relationship with the airline.

"As the global leader in data centre research, design and implementation, IBM looks forward to opening New Zealand’s first IBM Reliability Level 3+ Data Centre at Highbrook Business Park in March next year."

Chris Keall
Fri, 20 Aug 2010
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Gen-i moves in on IBM's Air NZ business
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