Datacom Group

Datacom Group

Type	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	NZ$1.085 billion (2016)[1]
Net income	NZ$27.2 million (2016)
Owners	Evander Management (52.3%)[2] New Zealand Superannuation Fund (37.6 per cent)
Number of employees	4,661 (August 2016)[3]
Website	datacomgroup.net

Datacom Group Limited is an 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, the USA and the UK, employing 4700 people across 29 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 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 a 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]

August 2014 - Datacom co-founder, Paul Hargreaves, dies after a short illness ^[24]

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.^[25] For its work, Datacom was awarded Microsoft's Cloud Enterprise Award at the 2013 Microsoft NZ Partner Awards.^[26]

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.^[27] 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.^[28]

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.^[29]

Financial Results

Datacom passed NZ$1 billion in revenue in FY2015/16, showing growth of 13%. Net profit after tax was $27.2 million, up 11.9%. This increased the 10 year compound annual growth rate to 11.5%, up from 11.2% on the previous year.^[30]

In FY 2014/15 revenue increased by 6.3 per cent to NZ$937 million, with a profit before tax of $35.3 million.^[31]

Awards and Certifications

• Amazon Web Services (AWS) - AWS Consulting Partner, AWS Next Generation MSP
• Apple - Apple Consultants Network
• Canalys - APAC Channel Partner of the Year
• Canon - Oceania Supplier of the Year 2014
• Cisco - Gold Partner, CISCO ANZ Innovation Partner of the Year
• Citrix - Platinum Partner
• Dell - PartnerDirect Premier
• EMC - Emerging Service Provider of the Year, Core Technology Partner of the Year, New Zealand Premier Partner of the Year
• FireEye - Alliance Partner of the Year 2015
• Hewlett Packard Enterprise - Platinum Partner, ESSN Data Centre Platinum Partner in Australia
• Hitachi Data Systems - ANZ Partner of the Year 2015
• IBM - Premier Business Partner
• Interactive Intelligence - APAC Partner of the Year, Newcomer of the Year, Largest CaaS Deal of the Year
• Lenovo - Diamond Partner, Australian Partner of the Year 2012
• Microsoft - Gold Partner, Microsoft Country Partner (NZ) of the Year, CRM Partner of the Year, Platinum Partner - Cloud Services
• Netapp - Gold Partner
• Oracle Platinum Partner
• Palo Alto Networks - Platinum Partner
• Samsung - Platinum Partner
• SAP - Certified Hosting Partner, Certified Application Management Services Partner
• Symantec - Gold Partner, FY15 Managed Services Provider of the Year ANZ, ExSP Partner of the Year ANZ, SMB Market Specialist Partner of the Year ANZ
• Trend Micro - ANZ Partner of the Year 2014, AffinityOne Partner
• Veeam Software - Platinum Partner ANZ
• Veritas Technologies Pacific Service Provider Partner of the year, 2016
• VMware - Premier Solution Provider, Premier Service Provider
• Uptime Institute - Management and Operational Stamp of Approval: Orbit and Kapua datacentres, New Zealand

Further reading

"Datacom Group Website". 

"About Datacom". 

"50 Years of Datacom - a complete timeline (PDF)" (PDF). 

"Datacom Annual Review List". 

References