ASG to build cloud services on IBM platform

ASX-listed ASG Group has chosen IBM hardware to underpin a forthcoming enterprise-grade cloud compute service.

The Big Blue hardware purchased included XIV storage systems, Power 770 systems, System x5 servers, IBM Backup solutions, Brocade switching and IBM Systems Director software.

The hardware would be used in ASG's Sydney and Perth data centres. The latter is expected to open next month.

ASG co-founder and general manager of marketing Steve Tull told CRN that the integrator had a long history deploying services on IBM hardware, including for the Department of Office of Shared Services in Western Australia. 

"We’ve partnered with IBM on more traditional managed services but this time we’ve said we want to get into a particular cloud-based offer," Tull said.

ASG said its cloud compute platform would be scalable and automated.

ASG’s Gerald Strautins, general manager of Strategic Business Solutions, said the IBM purchase agreement was critical to ASG’s entry into the Australian cloud compute market.

“IBM has proved it can deliver a purpose-fit solution to support the particular needs of our enterprise customers within our cloud strategy," he said.

“The ease of management of the IBM XIV and choice of processing architecture of the IBM System x3850 and x3690 and IBM Power 770 systems were key to the agreement."

ASG planned to market the cloud compute platform particularly to customers that it had helped deploy SAP enterprise resource planning software.

ASG has ramped up its SAP ERP business in recent years, buying a number of SAP-partners including Courtland Business Solutions Capiotech, Dowling Consulting and IT consulting firm Progress Pacific.

Local versus Amazon

Tull said the company bought the kit  to provide local hosting and management solutions as opposed to a "commodity-based service" such as Amazon or Rackspace. 

"Our solution can meet due diligence - when a customer is using an ERP system you need to make sure it will perform and be reliable," he said. 

ASG Group reported a record revenue of $74.03 million in the interim first half financial report. Net profit after tax, however, fell 5.7 percent to $6.09 million from the previous corresponding period.