By Nathan Dukes
The National Broadband Network Corporation (NBN Co) has chosen Oracle over SAP and other competitors as their primary provider of ERP systems.
Inside SAP received an email early last week addressed from NBN Co, which stated that ‘NBN Co has selected the ERP solution. Oracle is the chosen vendor’.
An NBN Co representative confirmed the decision yesterday, stating that ‘after a robust procurement process, Oracle was chosen by NBN Co as the preferred supplier for ERP software’.
NBN Co declined to comment any further on their decision of Oracle over SAP.
SAP ANZ Communications Director, Peter Sertori, said it would “be very disappointing if NBN Co. decides not to select SAP as their platform”.
“Regardless, SAP remains a strong supporter of the National Broadband Network, which we believe is an essential piece of national infrastructure. SAP offers much, much more than core ERP, so I hope there will be opportunities to work with NBN Co. down the track,” Sertori said.
Despite the lost contract, the opportunity still exists for SAP to collaborate with partners and others for work around the NBN. The existence of high speed national infrastructure opens the doors to new technologies.
As such, the NBN is part of a larger goal for SAP to take on new opportunities in the telecommunications space.
In early August last year, Mike Robinson was appointed the newly created head of telecommunications for SAP in Australia. Robinson said his primary objective would be to respond to significant growth opportunities in the telecommunications market, including the NBN.
In addition, late last year in a presentation to the American Chamber of Commerce, SAP ANZ CEO Tim Ebbeck invited the community to approach SAP to collaborate on R&D around the NBN.
“We need to build the NBN and turn our focus now to the development of applications that will realise the benefits of ubiquitous high speed broadband infrastructure in Australia,” Ebbeck said.
Winning the contract would have capped off a stellar 18 months for SAP ANZ, illustrated by annual revenue growth of 11.3{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} in the ANZ region in 2009.
The result is a far cry from the 8{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} revenue drop the company experienced globally over the same period.
NBN Co would have joined a long list of big wins for the company in ANZ last year, which included the National Australia Bank (NAB) and Queensland Rail.
These were in addition to a number of projects completed in 09, including Officeworks, Energy Australia and Queensland Motorways.
As SAP turn their attention now to other opportunities around the National Broadband Network, NBN Co has begun preparing their project team.
In the intercepted email, NBN Co said they are in the process of screening Oracle job candidates and would begin searching for a Project Manager to lead the implementation later this week.
NBN Co was established to build and operate a ‘fibre to the premises’ or FTTP network to 90{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} of Australians, with an expected speed of 100 megabits per second. The remaining 10{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} would receive wireless and satellite coverage at speeds in excess of 12 megabits per second.
The government has promised to invest up to $43 billion in the project over 8 years.
