Datacom Group

Datacom Group
Private company
Industry IT Services: managed services, consulting, cloud services, data centre services, software development, business process management, payroll services
Founded 1965 (1965)
Founders
  • Dr Bernard Battersby
  • Paul Hargreaves
Headquarters Wellington, New Zealand
Key people
  • Jonathan Ladd, Group CEO
  • Greg Davidson, CEO NZ
  • Craig Boyce, Chairman
  • Simon Holdsworth, Deputy Chairman
Revenue IncreaseNZ$937 million (2015)[1]
NZ$24.3 million (2015)
Owners

Evander Management (52.3%)[2]

New Zealand Superannuation Fund (37.6 per cent)
Number of employees
 4,095 (June 2015)[3]
Website datacomgroup.net

Datacom Group Limited is a Information Technology services company, offering IT management and consulting, cloud services, data centre services, custom software development, business process management and payroll services. The company was started in New Zealand in 1965, but has expanded to operate in Australia, Malaysia, the Philippines and the USA, employing more than 4000 people across 27 offices globally.[4]

The company's two biggest shareholders are Evander Management Ltd (the family company of John Holdsworth)[5] with 52.3 per cent and the New Zealand Superannuation Fund with 37.6 per cent. The New Zealand Superannuation Fund spent $142 million in 2012 buying out New Zealand Post's 35 per cent shareholding.[6] John Holdsworth stepped down as chairman of the board in 2012 and was replaced by New Zealand businessman Craig Boyce.[7]

Datacom was founded as Computer Bureau Ltd in Christchurch, New Zealand in 1965. It expanded nationally through the holding company Datacom Group Ltd in 1971, before opening offices in Australia in 1992, and in Asia in 1994. Jonathan Ladd serves as group CEO of the company, Greg Davidson is the CEO of Datacom New Zealand.[8] Ladd assumed the role of Group CEO following the death of Michael Browne in July, 2010.[9]

History

1960s

Datacom was founded as Computer Bureau Ltd in 1965 by two Christchurch accountants, Dr Bernard Battersby and Paul Hargreaves.[10] Their vision was to provide cost effective IT services to clients who needed automation, but could not afford to take on the risk alone in a market in which skills were scarce, risks significant, and the cost of the technology very high.[11]

A group of clients put up the original capital for the company - £30,000 - and an order was placed for an ICL 1902 computer, which didn't arrive arrive in New Zealand for another year.

The company hired its first systems analysts and programmers in August, 1965, and installed the first computer for a client in September of the following year.

In 1968, the company, now called CBL added additional offices in Wellington, Auckland and Hamilton between 1968 and 1970.[12]

1970s

In 1970, Hargreaves quit his family's accounting firm to run CBL full-time, and the business expanded to Auckland via the acquisition of the Fletcher Computer Bureau.

In 1971, the Datacom Group holding company is established.

CBL began offering remote on-line services through onsite terminals beginning in 1976.

1980s

CBL expanded its software development arm, introducing User-11, the first 4GL (Fourth-generation programming language) seen in New Zealand in 1981. The company also set up a data communications network and a New Zealand-wide timesharing service in the early 1980s.

In 1983, CBL was the first to bring Oracle database technology to New Zealand for the NZ Dairy Company (now Fonterra).

In 1984, CBL changed its name to Datacom. Hargreaves is appointed executive director, and later CEO when Battersby retires.

Datacom merged with computer-services company CCL in 1989, added facilities management and payroll divisions.[13]

1990s

In 1991, Datacom signs its first large outsourcing contract in Auckland with Telecom Directories. The same year Datacom Wellington merges with the IT department of New Zealand Post, boosting staff numbers by 90.

In 1992, Datacom established a contact centre in Sydney, and in 1994 its first Australian office. This expanded its NZ-based services to Microsoft Australia. This regional service provided diagnostic technical support services to clients and customers. Datacom began exporting some of its facilities management and IT services into its Australian offices in the late 1990s, leading to the company’s first data centre in Australia.

1996 saw the company open its first office in Asia, in Malaysia's Kuala Lumpur.

The business also further established partner programs and sales services with the channel and reseller community.

2000s

During the 2000s, Datacom made a series of acquisitions that spread its services to other locations in Australia. In 2004, it purchased GlobalCenter for $7.15 million, its second data centre,[14] and the following year, the company purchased NetOptions to establish a presence in Queensland.[15]

It expanded from this base in 2007 after acquiring IT services company Agire Pty Ltd, located in Townsville.

Through start-up opportunities with local partners, Datacom moved into South Australia in 2006, and Western Australia in 2007. By the end of 2007, the company had acquired a third data centre in Sydney through Hansen Professional Services. [16] Its fourth data centre came in 2011 in Western Australia.[17]

Datacom commenced business in Asia in 1994, building contact centres in Malaysia in 1996, and the Philippines in 2008, at the same time establishing a presence in China.[18] In 2009 Datacom opened its Auckland data centre, Orbit.[19]

2010s

Datacom opened a sister facility to Orbit, Kapua, in Hamilton in 2013.[20]

In 2013 Datacom also sold the contact centre arm of its Asia business,[21] but continued to serve the market with IT services.

In the same year Datacom acquired an SAP payroll firm in Melbourne to establish a strong relationship in the Australian health sector, and as a provider of SAP services.[22]

In 2014, Datacom announced its acquisition of Tauranga-based software company Origen Technology Ltd.[23]

The company also produced the (then) world's largest SAP migration to the Microsoft Azure cloud platform, with the world's largest kiwifruit exporter, Zespri.[24] For its work, Datacom was awarded Microsoft's Cloud Enterprise Award at the 2013 Microsoft NZ Partner Awards.[25]

In March 2015, Datacom won the Australian Federal Department of Health support services contract after a competitive tender process. The $242 million, five-year deal will see Datacom providing technology infrastructure and support services under a fully managed, consumption-based model.[26] This joined its other Australian long term government contracts, such as Australian Customs, Australian Border Force and CrimTrac, the Department of the Environment, the Australian Taxation Office, and Airservices Australia.

In July 2015, Datacom was announced as Australia's first company to join Amazon Web Services Managed Service Program, one of only 20 worldwide.[27]

In November Microsoft Australia announced Datacom as one of the latest partners to join its one-tier Cloud Solution Provider (CSP) program, which allows them to own the billing for products such as Office 365.[28]

Financial Results

Revenue for Datacom increased by 6.3 per cent over the 2014/2015 year, for a total of $937 million, and profits of $35.3 million. The company maintains a ten-year compound annual growth rate for its revenue of 11.2 per cent.[29]

Awards and Certifications

References

  1. ↑ "Datacom Group Annual Report 2015-2016". 2015.
  2. ↑ "NZ Company List". NZ Company list. 2015.
  3. ↑ "Datacom Group Annual Report 2015-2016". 2015.
  4. ↑ "Datacom: Who we are". Datacom. 2016.
  5. ↑ "HOLDSWORTH, John, The NBR Rich List". National Business Review. 2015.
  6. ↑ "NZ Post sells Datacom stake to Cullen Fund". Stuff.co.nz. 2012.
  7. ↑ "Holdsworth hands over Datacom reins". Stuff.co.nz. 2012.
  8. ↑ "Datacom: Low-profile high-flyer". The New Zealand Herald. 2011.
  9. ↑ "Ladd steps in as Datacom group CEO". ARNnet. 2010.
  10. ↑ "Paul Hargreaves Bio". NZ Hi-Tech Awards. 2015.
  11. ↑ "Datacom: Low Profile High Flier". The New Zealand Herald. 2011.
  12. ↑ "Datacom History". Datacom. 31 March 2014.
  13. ↑ "Datacom History". Datacom. 31 March 2014.
  14. ↑ "Datacom buys GlobalCenter building". ITNews. 2005.
  15. ↑ "Datacom, NetOptions merge for further growth". ITNews. 2005.
  16. ↑ "Datacom Australia Acquires Hansen Professional Services". Datacentres.com. 2007.
  17. ↑ "Datacom Ranked Among Most Trusted Cloud Providers in Australia". arnnet.com.au. 2012.
  18. ↑ "Datacom opens $3m KL office". Stuff.co.nz. 2009.
  19. ↑ "PM salutes new data centre". IT Brief NZ. 2009.
  20. ↑ "Inside Datacom's Kapua datacentre". Computerworld. 27 May 2013.
  21. ↑ "Datacom History". Datacom. 31 March 2014.
  22. ↑ "Datacom to offer SAP applications in the cloud". Datacom. 31 March 2014.
  23. ↑ "Datacom further strengthens its Local Government Solutions capability with the acquisition of Origen". Datacom. 31 March 2014.
  24. ↑ "Datacom and Zespri deliver a world first in public cloud". The National Business Review. November 13, 2014.
  25. ↑ "Cloud solutions dominate 2013 Microsoft NZ Partner Awards". Scoop.co.nz. 2014.
  26. ↑ "Datacom wins $242 million tech contract with Department of Health". The Australian Financial Review. 1 April 2015.
  27. ↑ "Datacom one of world's first Amazon MSPs". CRN Australia. 2 July 2015.
  28. ↑ "Microsoft adds Datacom, DiData and more to cloud program". CRN Australia. 17 November 2015.
  29. ↑ "Datacom Group Annual Report 2015-2016". Datacom Group. June 2015.
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